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/raid1/www/Hosts/bankrupt/TCRAP_Public/000315.MBX T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, March 15, 2000, Vol. 3, No. 52 Headlines * A U S T R A L I A * NSW MINERALS: Price plunge derails comeback hopes TELSTRA: Sell-off plan at risk * C H I N A & H O N G K O N G * CHUN TAI HOLDINGS: Given deadline on debt effort CHUN TAI INDUSTRIES: Given deadline on debt effort CHUN TAI TOYS: Given deadline on debt effort LI TZAR-KAI, RICHARD: Hikari loss put at US$601m STIME WATCH INT'L HOLDING: Tells HKSE of proposed changes * I N D O N E S I A * PT BANK MANDIRI: Told to transfer bad loans PT BANK NEGARA: NPLs transferred to IBRA PT CHANDRA ASRI: Creditor dragging out rehab talks PT TIRTAMAS COMEXINDO: Gets 6-month debt suspension TEXMACO GROUP: NPLs transferred to IBRA * J A P A N * MEDIARING.COM: Internet bursting drops stock MITSUBISHI MOTORS CORP.: Debt-ridden co. looks for partner PACIFIC CENTURY REG.DEVEL.: Internet bursting drops stock SOFTBANK: Internet bursting drops stock SONY CORP.: Internet bursting drops stock TAISHO LIFE INS.CO.: More hurdles after Claremont deal TOKYO STEEL MFG.CO.: Expects to post annual loss VENTURE MFTG: Internet bursting drops stock * K O R E A * KOREA HEAVY INDUS.AND CONSTR.: Chair responsible for loss SAMSUNG MOTOR: Tough negotiating begins * M A L A Y S I A * ADVANCE SYNERGY BHD: Annual loss expected RENONG: UEM to raise RM3.75b through listing of Plus * P H I L I P P I N E S * NATIONAL POWER CORP.: Losses hit P4B in '99 PILIPINO TEL.CORP.: SEC orders fine paid * S I N G A P O R E * TONG TIEN SEE CONSTRUCTION: Placed under judicial mgmt. VENTURE MANUFACTURING: Leading tech stock falls 20 percent * T H A I L A N D * IRIDIUM SOUTHEAST ASIA: Operator closes down, demise near SAMITIVEJ PLC: Notifies SET of civil suit filed vs. it TELECOMASIA CORP.: Tells SET of closing shareholders book THAI PETROCHEMICAL INDUSTRY PLC: Losing PR battle? THAI PETROCHEM.INDUS.: Bad loans, little improvement ================= A U S T R A L I A ================= NSW MINERALS: Price plunge derails comeback hopes ------------------------------------------------- The NSW coal industry's recovery in 1998-99 has been offset by a deteriorating situation caused by the plunge in contract prices for export coal since last April, according to a survey. A survey of 86 per cent of the State's coal producers found that overall net profit in 1998-99 was $178 million, compared with a loss of $186 million in 1997-98. However, the NSW Minerals Council said profits had "deteriorated seriously" since April 1, when contract prices for export coal fell significantly. Council chairman Mr Bob Humphries said the fall in export contract prices would be exacerbated when lower prices took effect next month. Last week, thermal prices were settled for the coming year, with the benchmark price going down a further $1.20 an 18 per cent drop over two years. Mr Humphries said he hoped this was the bottom of a pricing cycle and that the outlook for the next five years was more positive. However, the NSW industry continued to struggle, with an average return on shareholders' funds of less than 5 per cent for the past 10 years. "In terms of the last decade, I don't believe the industry has made anywhere near enough return on shareholders' funds, and that has to be worrying looking out," Mr Humphries said. "I think you can see it reflecting in the Australian coal industry in the number of mines up for sale." Twenty-two companies, making up 86 per cent of the NSW industry, responded to the annual survey by PricewaterhouseCoopers. The bulk of the profit recorded for the year came from three respondents. Overall, results would have been down if those three were excluded. The survey also forecast the lowest capital expenditure in a decade - $339 million in 1999- 2000. Mr Humphries said positives included an increase in employee output per year of 18.4 per cent on the previous year, which indicated that productivity was improving strongly. A more competitive rail-freight regime and improvement in the Port of Newcastle's operations also contributed to improved results. "We are expecting further improvements in access charges this year with the final phase-out of the monopoly rent," Mr Humphries said. The number of employees in the NSW coal mining industry was also forecast to fall from 10,562 to 9,908 in 1999-2000. The survey included Austral Coal Ltd, BHP Coal, CIM Resources Ltd and Rio Tinto Coal Pty Ltd. (Australian Financial Review 14-March-2000) TELSTRA: Sell-off plan at risk ------------------------------ The Howard Government was last night attempting to salvage the full sale of Telstra Corp as the company's chief executive, Dr Ziggy Switkowski, called for a more realistic political debate on its privatisation. Despite major reservations within Coalition ranks, the Government is pushing to keep the sale of its 50.1 per cent stake in Telstra on the agenda in order to address - as part of its Budget strategy - the rising demands from rural and regional areas. But the sale is an extremely sensitive issue, with some National Party MPs hardening their opposition and the Prime Minister, Mr John Howard, yesterday failing to specifically commit a fully privatised Telstra to maintaining services in the bush. In an unusual intervention in the highly charged political debate, Dr Switkowski last night released a letter sent to every Federal parliamentarian in which he defended the company's commitment to the bush. Dr Switkowski called for the political debate to be "grounded on the reality" of service quality, rapidly changing technology and increased market competition. Calling on Parliament not to shackle the company with unrealistic commercial demands, he said: "People have to accept that we can only maintain our high level of investment if we are able to operate competitively and generate necessary returns to provide sufficient funds for reinvestment." In a series of meetings yesterday, National Party MPs put forward options for a package to address their concerns about the level of telecommunications service in regional areas. One option attracting growing support among Coalition MPs is for the universal service obligation scheme to be opened to competition. This would allow telcos other than Telstra to deliver services to the bush under the scheme, which is financed through an industry fund. A briefing yesterday at Parliament House by Optus executives impressed key Government MPs on the benefits of using satellite technology to deliver telephony, pay-TV and internet services to rural areas. Telstra has been under heavy fire from Federal MPs since its announcement last week that it was shedding up to 16,000 jobs, at the same time as it announced a record $2.1 billion half yearly profit. In an attempt to allay concerns that Telstra's job-shedding program will fall disproportionately on the bush, Dr Switkowski said the company had a "solemn commitment to improve service to all Australians". "There has been much political commentary to the effect that it will be regional and rural Australia which bears the brunt of this reduction," he said. "This has no basis in fact and is inconsistent with our history." Dr Switkowski told the MPs that Telstra would "look closely at transferring functions into regional Australia." The Government's attempts at damage control on the Telstra debate were undermined when a Liberal MP - and chairwoman of Parliament's primary industries and regional services committee - Ms Fran Bailey, said the "loss of any further jobs in regional Australia is going to exacerbate the problems that currently exist" with telecommunications. This contradicted the Prime Minister's comments in Parliament, that job losses did not mean lower quality services. As Labor focused its attack on the Government's handling of Telstra, Mr Howard said the best way to ensure better services to the bush were under the universal service obligation - which provides a legislative guarantee that all Australians are entitled to a basic level of communications service. "This notion that the only way you can have standards, the only way you can deliver services, is for the Government to own [Telstra] is totally fallacious," Mr Howard said. But Opposition leader Mr Kim Beazley said Mr Howard had abandoned his commitment last month to draw a line under service levels in regional Australia. The so-called Nyngan declaration was "out the window", Mr Beazley said. "John Howard was not able to ensure that a fully privatised Telstra would not withdraw services or reduce service levels in regional Australia," Mr Beazley said. (Australian Financial Review 14-March-2000) ============================== C H I N A & H O N G K O N G ============================== CHUN TAI HOLDINGS: Given deadline on debt effort CHUN TAI INDUSTRIES: Given deadline on debt effort CHUN TAI TOYS: Given deadline on debt effort -------------------------------------------------- Consumer-electronics maker Chun Tai Holdings has 10 days to satisfy a judge that restructuring steps are being taken to hold off two winding-up petitions against subsidiaries. Mrs Justice Doreen Le Pichon gave Chun Tai Toys (China) and Chun Tai Industries until March 24 to report on the restructuring. The Court of First Instance heard three options being considered, all with different ramifications for creditors. With regard to Chun Tai Toys, 26 per cent of creditors were in favour of a scheme, but this number was achieved in a limited time scale. "You have to give the court some indication of when you can realistically put forward a proposal," Mrs Justice Le Pichon said. "At the moment, you have too many options." If she is satisfied with the progress report, the judge will allow a four-week adjournment. If not, the case will be heard again on March 27. Chun Tai first experienced financial difficulties a year ago when a creditor sued the company for $433,165. It then negotiated with 25 banks and financial institutions to restructure $290 million in debts. (South China Morning Post 14-March-2000) LI TZAR-KAI, RICHARD: Hikari loss put at US$601m ------------------------------------------------ Richard Li Tzar-kai, fresh from winning the US$38.1 billion battle for Cable & Wireless HKT, has made a US$601 million paper loss on his personal investment in Internet giant Hikari Tsushin in just one month. Mr Li, chairman of Pacific Century CyberWorks, holds 510,200 Hikari Tsushin shares. The shares were acquired on February 11 via a share-swap deal with Hikari Tsushin president Yasumitsu Shigeta. The deal valued the shares at 213,000 yen (about HK$15,570) each, or US$1.03 billion for the stake. However, Hikari Tsushin's shares have plunged almost 60 per cent in the past month, and 47 per cent in the past week, amid rumours Mr Shigeta had been involved in insider trading. Although Hikari Tsushin denied the rumours, the counter continued to weaken. Yesterday, it fell 5.9 per cent to close at 88,500 yen on panic selling. This represents a fall of 58.45 per cent since February 11, valuing Mr Li's stake at about US$429 million. Mr Shigeta, who acquired 332.52 million CyberWorks shares at HK$23.40 each in the deal with Mr Li, has also suffered a paper loss. Since the swap, the counter has dropped HK$2.70, putting Mr Shigeta's paper loss at HK$897.8 million. Meanwhile, Alex Arena, group managing director at CyberWorks, confirmed that Mr Li and News Corp chairman Rupert Murdoch had held a meeting last week. "It was only a brief, general business discussion, just an exchange of views," Mr Arena said. However, no decision had been reached as to the fate of the Star TV-HKT joint venture, he said. Analysts said CyberWorks was dragged down by Hikari Tsushin's sluggish performance and concerns about other Asian Internet stocks. CyberWorks stock price eased HK$1.45 yesterday to close at HK$20.70. Winston Lam Wing-hang, fund manager at Nikko Global Asset Management, said CyberWorks would have strong support at HK$18.60, the minimum price Britain's Cable & Wireless would accept for HKT's merger with CyberWorks. Jonathan Iu, analyst at SG Emerging Market Equity Research, said selling pressure on CyberWorks would continue in the short term. (South China Morning Post 14-March-2000) STIME WATCH INT'L HOLDING: Tells HKSE of proposed changes --------------------------------------------------------- Stime Watch International Holding Limited, through CHEUNG Lik Chung, Chairman, notifies the Stock Exchange of Hong Kong, that it proposes to change its English name to "Medtech Group Company Limited" and its Chinese name to "*", for the purpose of identification only. The Company also proposes to change it principal place of business. The Company gives notice to convene a special general meeting ("SGM") of the Company to be held at 4:00 p.m. on 8 April 2000 (Saturday) at which a special resolution will be proposed for the shareholders to consider, and if thought fit, to approve a change (subject to the change being approved by the Registrar of Companies in Bermuda) of the name of the Company to "Medtech Group Company Limited" and to adopt the Chinese name of "*" as the Company's new Chinese name for identification purposes (together hereinafter the "Name Change"). Upon the date of registration of a certified copy of the shareholders resolution referred to above by the Registrar of Companies in Bermuda, the Name Change will become effective. The Name Change is proposed following the successful restructuring of the Company in February 2000 (which completion of restructuring was effectively announced by the Company by way of a press announcement dated 16 February, 2000 in relation to the completion of the Company's rights issue) upon which the liquidity problems of the Company and its subsidiaries ("Group") were effectively resolved. The directors of the Company consider that the proposed new name of the Company will reflect more appropriately the Group's continuing commitment to carry on its existing business activities of manufacturing and selling of watch and watch components, as well as the Group's commitment in the pursuit of suitable business opportunities which are complementary to the Group's existing business. A circular which will deal with, amongst other things, arrangements with respect to new share certificates bearing the new name of the Company (assuming the special resolution for change of name is passed) together with another copy of the notice convening the SGM and a form of proxy for use in relation to the SGM will be despatched to the shareholders of the Company shortly. A further announcement will be made when the proposed change of name takes effect. Additionally, the Company wishes to announce that the Company's principal place of business in Hong Kong will be changed from Units 9-10, 10th Floor, Vanta Industrial Centre, 21-33 Tai Lin Pai Road, Kwai Chung, New Territories, Hong Kong to Rooms 2701-2702, Far East Finance Centre, 16 Harcourt Road, Admiralty, Hong Kong upon the date on which the Name Change becomes effective. [*= is Chinese symbol] (Hong Kong Stock Exchange 14-March-2000) ================= I N D O N E S I A ================= PT BANK MANDIRI: Told to transfer bad loans ------------------------------------------- Finance minister Bambang Sudibyo said on Monday state Bank Mandiri should "immediately" transfer its remaining bad loans to the Indonesian Bank Restructuring Agency (IBRA). He said there should be no more delays in the transfer of the bad loans to the agency. "All category five (bad) loans must be transferred (to IBRA)," Bambang told reporters following a monthly meeting with the central bank. Under the government bank recapitalization program, all recapitalized banks must transfer their bad loans or category five loans to IBRA to have a clean balance sheet. The government completed the recapitalization of Bank Mandiri in December by injecting some Rp 178 trillion worth of bonds. Bank Mandiri passed some Rp 76 trillion in bad loans to IBRA last year. This represents about half of its total bad loans. Bank Mandiri, the country's largest bank, was formed in July 1999 through a merger of Bank Bumi Daya (BBD), Bank Dagang Negara (BDN), Bank Ekspor Impor (Bank Exim) and Bank Pembangunan Indonesia (Bapindo). Separately, IBRA senior official Andreas Bunanta said on Monday that there were about Rp 23 trillion in bad loans left at Bank Mandiri. He said the bank said it wanted to manage and restructure about Rp 9 trillion of the loans until June this year. He said the remaining Rp 14 trillion should have been transferred by the end of last year. State banks were treated as the cash cows of politicians and well-connected businessmen in the past during the authoritarian rule of former president Soeharto. There has been increasing concern that state banks joining the government bank recapitalization program were trying to keep the bad loans out of IBRA's hands. State Bank BNI has recently been attacked by the media on allegations that it was trying to keep bad loans owed by integrated textile Texmaco Group. The loans were finally transferred by BNI late last week after the central bank issued a ruling for the transfer. The Texmaco loans transferred by BNI totaled more than Rp 9 trillion. Texmaco was hit by controversy last year after a minister revealed that the company had used its connection with former president Soeharto to obtain more than Rp 9 trillion in loans from Bank BNI. The government is set to soon recapitalize publicly listed Bank BNI. (The Jakarta Post 14-March-2000) PT BANK NEGARA: NPLs transferred to IBRA TEXMACO GROUP: NPLs transferred to IBRA ---------------------------------------- PT Bank Negara Indonesia has transferred its non-performing loans, including those owed by the Texmaco Group, to the Indonesian Bank Restructuring Agency, the body's chairman Cacuk Sudarijanto said. Speaking to reporters at the central bank, Sudarijanto said BNI was temporarily transferred to the supervision of IBRA from Bank Indonesia to enable the transaction. "This was a technical matter to enable the transfer of Texmaco's credit to proceed smoothly," Finance Minister Bambang Sudibyo said. (AFX News Limited 13-March-2000) PT CHANDRA ASRI: Creditor dragging out rehab talks -------------------------------------------------- The Indonesian Bank Restructuring Agency (IBRA) said here Marubeni of Japan has sought to drag out talks on restructuring the debts of PT Chandra Asri Petrochemical Center (CAPC). Eko Santoso Budianto, deputy chairman of IBRA said Marubeni, one of CAPC's creditors, was not serious in seeking to restructure the debts of the giant petrochemical company at a meeting last week. Eko said the meeting on Friday was expected to come to a conclusion on share split but Marubeni said it was not yet prepared to discuss that issue with IBRA, now controlling CAPC. The government agency has suggested converting the debts of the company into equity. CAPC, the only producer of olefin products in the country, was built at a cost of US$ 2.04 billion and US$ 1.14 billion of which were in loans. "I suspect that Marubeni deliberately is seeking to delay restructuring of CAPC's debts," he said, adding that he would report the failure in Friday's talks to the government. He said the governments of Indonesia and Japan have agreed on a loan package of US$ 950 million to save ailing CAPC from worse condition. "Immediate solution would save the company from falling lower in value when the government offers it to other investors," he said. Earlier Eko said if the company could operate normally it would be able to repay US$ 500 million of its debts. (Asia Pulse 14-March-2000) PT TIRTAMAS COMEXINDO: Gets 6-month debt suspension --------------------------------------------------- The commercial court granted a request by PT Tirtamas Comexindo for a six-month suspension of payment, over- ruling a bankruptcy suit against the company by the Indonesian Bank Restructuring Agency (IBRA). "The request for a suspension of payments is allowed," chief judge Mahdi Soroinda Nasution told the final hearing on the case. "(The decision was made) in consideration of the need to reverify the debts and for creditors' meetings." PT Tirtamas Comexindo is a trading company owned by Hashim Djojohadikusumo. (AFX News Limited 13-March-2000) ========= J A P A N ========= MEDIARING.COM: Internet bursting drops stock PACIFIC CENTURY REG.DEVEL.: Internet bursting drops stock SOFTBANK: Internet bursting drops stock SONY CORP.: Internet bursting drops stock VENTURE MFTG: Internet bursting drops stock --------------------------------------------------------- The bursting of the Japanese Internet bubble and a 6.6 per cent collapse in Taiwanese stocks yesterday on political concerns sent regional markets skidding to their lowest point in months, raising fears that if Nasdaq follows suit, a vicious cycle of selling might be on the cards. Weighed down by a 20 per cent crash in leading electronics counter Venture Manufacturing and a 17 per cent meltdown in punting favourite Pacific Century Regional Developments, the Straits Times Index plunged 53.58 points or 2.6 per cent to end at 2,042.66, its lowest since the end of October last year. "The big question is whether Nasdaq can resume its upward momentum after the tech sell-off in Japan and Korea," said an institutional source here. "This is all the more important now that we know earnings for the new economy stocks are more likely to disappoint than surprise on the upside." On Friday, Venture reported a 31 per cent profit rise for 1999 that was below the market consensus of 41 per cent growth. Venture crashed $5.60 to $22.70 yesterday with 3.4 million shares changing hands. Two weeks ago, Internet firm Mediaring.com reported a shocking loss of $26 million for 1999 and said it expects losses for a few more years yet. Its shares, which were offered at 53 cents last November and hit a high of $2.01 in January, yesterday dropped 7.3 per cent to $1.01. Dealers said the worry was that the plunges in the major North Asian markets could spill over to Nasdaq which would then set off another round of selling today. "When you consider that most tech and Internet stocks have run up on nothing more than a wing and a prayer, this kind of fear of a domino effect is not irrational," said a dealer. In Japan, the Nikkei plunged 560.47 points or 2.8 per cent to 19,189.93 with Internet stocks leading the way. The Sankei-Bloomberg Net Index of Japanese online pioneers such as Softbank Corp is down 34 per cent in the past three weeks -- tumbling 9 per cent yesterday alone on earnings concerns -- even as the Bloomberg US Internet Index rose 23 per cent. Softbank, which rose more than 14-fold last year on expectations of earnings growth from its portfolio of Internet investments, dropped 5 per cent. The company, which has forecast a loss of almost 82 yen per share for the fiscal year ending this month, has lost a third of its value in just a week. Sony Corp, which is repositioning itself as an online play by linking its video games and household appliances to the Internet, tumbled 7.6 per cent, completing a 25 per cent slide in eight days. (Singapore Business Times 14-March- 2000) MITSUBISHI MOTORS CORP.: Debt-ridden co. looks for partner ---------------------------------------------------------- A potential marriage between DaimlerChrysler AG and Mitsubishi Motors Corp would likely differ greatly from that of Renault and Nissan, with Mitsubishi retaining more management say, analysts said on Monday. Expectations that a deal is in the works were fuelled further by Japanese media reports over the weekend that Mitsubishi Motors was willing to let DaimlerChrysler take a stake of 33.4 to 34 percent, giving it veto power. The German-US auto giant is the world's sixth largest automaker and Mitsubishi is Japan's fourth largest manufacturer of full-sized cars. Together they would be the world's third largest, producing 6.5 million vehicles annually. DaimlerChrysler has declined to comment on the reports while Mitsubishi Motors President Katsuhiko Kawasoe said on Friday in Kuala Lumpur that the Japanese automaker was talking to many companies on many matters but had no particular partner in mind. However, analysts say the breadth of the reports made it likely talks were serious and a deal could be in the offing if Mitsubishi was willing to offer a 33.4 percent stake or more. A deal would give DaimlerChrysler a much-needed base in Asia as well as a partner to help it in its small car development while Mitsubishi would gain relief from its heavy debt load. Mitsubishi Motors is, however, part of the venerable Mitsubishi industrial group and at the end of March 1999 the total of 28 Mitsubishi firms' holdings in the automaker came to 48.3 percent, company data showed. A deal would change this ratio and the Mitsubishi group holding could fall substantially or even below DaimlerChrysler's if all or most of a capital injection was completed through new share issuance, said Howard Smith, analyst at ING Baring Securities. But even if this pans out for DaimlerChrysler, analysts add that the Mitsubishi group is likely to keep substantial influence in the boardroom. "DaimlerChrysler would have veto power and the final say and thus huge influence, but Mitsubishi is likely to retain some measure of independence," said Schroders Japan analyst Koji Endo. This would make a DaimlerChrysler-Mitsubishi deal very different from Renault SA's takeover of Nissan Motor Co last year in which it paid $5.4 billion for a 36.8 percent stake. By sending key executive "le cost-killer" Carlos Ghosn in as chief operating officer, the French automaker has full control while President Yoshikazu Hanawa and other Japanese executives have faded deep into the background. Analysts said that while debt-burdened Mitsubishi is in desperate need of a partner for its passenger car division, it has much less debt to pay in the next three years compared with Nissan and would not need the same size of capital injection. Although group heavyweights such as Mitsubishi Heavy Industries and Mitsubishi Corp have their own financial woes and are likely encouraging a deal with DaimlerChrysler, their continued board presence would boost Mitsubishi's say. Nissan never had that clout. Mitsubishi Heavy owns 26.97 percent of the automaker, Mitsubishi Corp owns 8.41 percent and the Bank of Tokyo- Mitsubishi, the strongest bank in Japan and its main bank, has a 4.67 percent holding. While some analysts were optimistic that in the case of a deal, DaimlerChrysler and Mitsubishi would be able to work out potential differences, most were not ready to bet on smooth sailing. "In the musical chair game of auto industry consolidation, it seems DaimlerChrysler is grabbing Mitsubishi because its the only seat in Asia left," said Takaki Nakanishi, auto analyst at Merrill Lynch. "There's no sense that they have thought out a business model yet." Analysts point to a history of rocky relations between Mitsubishi and Daimler. The two planned a comprehensive business tie-up in the early 1990s but it came to nothing. The jury is still out on the success of Daimler's merger with Chrysler, with the two companies far from fully integrated. Adding Mitsubishi to the mix could worsen management headaches. Mitsubishi Motor shares closed up 14 yen or 3.68 percent at 394 yen on Monday, which compares with levels around 330 yen before reports of a possible deal emerged a week ago. (China Daily 14-March-2000) TAISHO LIFE INS.CO.: More hurdles after Claremont deal ------------------------------------------------------ Taisho Life Insurance Co., long desperate to raise a minimum of 3 billion yen by selling new shares to ride out the current fiscal year, has hit the target, with Claremont Capital Holding Inc. expressing an interest to buy a controlling stake in the insurer. After being ordered on Feb. 14 by the Financial Supervisory Agency to bolster its capital base, Taisho Life had been searching for buyers of its new shares. The insurer, however, failed to find buyers before the Feb. 28 deadline to present a credible management rehabilitation program. Only three days after Taisho Life executives were first sounded out about possible investment by Claremont on Tuesday, they suddenly reached a breakthrough. The insurer is now negotiating with its business partners, asking them to buy new shares worth more than 1 billion yen. Taisho Life will now face an even more formidable task shoring up its ailing insurance businesses, which pushed it into the current turmoil in the first place. But it may not be that easy for Claremont to market via its sales channels mutual funds managed by one of Claremont's subsidiaries. (Nikkei 14-March-2000) TOKYO STEEL MFG.CO.: Expects to post annual loss ------------------------------------------------ Tokyo Steel Mfg Co (TSE:5423) said Friday it expects to post a net loss of 13.5 billion yen (US$ 126 million) in the current year through March 31, compared with a loss of 11.7 billion yen the previous year. In October 1999, the company had projected a net loss of 7.5 billion yen. Extraordinary losses will total 6 billion yen, including 3.3 billion yen to cover shortfalls in retirement allowance reserves. Previously, it only set aside 40% of its retirement allowance needs into reserves, but this will be raised to 100% from the current year. The move comes ahead of new accounting standards to be implemented in fiscal 2000. "There will be no retirement reserve shortfalls under the new accounting standards," said Yoshihiro Iketani, a director. The company expects an extraordinary loss of about 1 billion yen to book evaluation losses on stockholdings and to set aside loan loss reserves for subsidiaries. Sales are expected to decline 14%. Sales of steel bar products have been sluggish. A fall in prices of steel products was another negative factor. The company expects to post 9 billion yen in operating loss, due to a rise in scrap iron prices. Pretax loss is seen at 7.5 billion yen, an improvement from the 8.3 billion yen loss in fiscal 1998. (Asia Pulse 13-March- 2000) ========= K O R E A ========= KOREA HEAVY INDUS.AND CONSTR.: Chair responsible for loss --------------------------------------------------------- Korea Heavy Industries and Construction (Hanjung) president Yoon Young-suk is likely to be replaced in the future, with Minister of Commerce, Industry and Energy Kim Young-ho telling reporters Monday that Yoon would be expected to take full responsibility for management decisions resulting in huge losses for the state-invested firm. Hanjung took a W80-billion loss from its purchase of Daewoo commercial papers following a liquidity crisis at the group last last. Kim added that there are many ways Yoon would be asked to take responsibility, saying that he would proceed carefully in deciding Yoon's fate. Kim said, however, that he would make a firm decision before Hanjung's annual shareholders' meeting on March 27. Yoon worked at Daewoo for more than 20 years and was appointed chairman of the entire group in 1995. He has been serving as the chair of Hunjung since 1998. (Digital Chosun 13-March-2000) SAMSUNG MOTOR: Tough negotiating begins --------------------------------------- French auto giant Renault SA kicked off a week of tough bargaining here on Monday in a dispute with South Korean banks over the selling price of failed Samsung Motors Inc., officials said. The six Renault negotiators, who flew into Seoul from Paris in the morning, had a warm-up session in Seoul with Samsung Motors' creditors in the afternoon ahead of full talks, main creditor Hanvit Bank said. "Tough bargaining is expected," Ryu Han-Cho, a Hanvit Bank executive and Seoul's chief negotiator, told AFP after meeting with the French team led by Vice President Jean- Marc Lepeu at a Samsung Motors office here. Seoul's Yonhap News Agency earlier said that the French delegation also included three others from Renault's brokerage firms. "Its too early to tell whether or not the negotiations will produce any progress during the talks," Ryu said. The bargaining with Renault would last for a week or so, he said, adding the talks would likely get underway in earnest on Tuesday. At stake is the selling price of Samsung Motors that went bankrupt after launching at the height of the country's economic crisis in 1998. An uphill battle awaits Renault, which has proposed taking over Samsung Motors for 450 million dollars, an offer rejected by local creditors who have valued the auto company at more than a billion dollars, officials said. "We want to sell Samsung Motors at a reasonable price, not a cheap one," another South Korean banker said on condition of anonymity. South Korean creidtors, including Hanvit, have also branded Renault's proposed terms of payment as outrageous. Renault proposed to immediately pay 50 million dollars in cash for its takeover of Samsung Motors and the remainer of 400 million dollars later in the 10-percent ceiling of business profits. A Hanvit executive even warned last week that local creditors might organise an international auction to sell Samsung Motors to other firms if Renault did not better its offer by the end of the month. Renault was granted exclusive negotiating rights for Samsung Motors for three months from December 30. The Hanvit official said other potential bidders, including German auto parts company Sachsenring Automobiltechnik AG, were being eyed for a possible auction, and urged Renault to better its bid. But auto analysts here said few other foreign firms were queueing to buy Samsung Motors. "In reality there is noone else really interested in Samsung Motors and its the sort of firm that would be sold for a symbolic dollar in the West," said an industry source, adding however that the deal was still advancing. Renault's acquisition of Samsung Motors would mark a milestone in the opening up of South Korea's market, where only some 2,500 of the 1.6 million cars sold annually are foreign-made. Samsung Motors, which went under court receivership in July last year with debts of 4.3 trillion won (3.78 billion dollars), has annual production capacity of 240,000 units, derived from Japan's Nissan Motor Co. Ltd. models. Renault already owns a controlling stake in Nissan, which supplies parts and technology to the South Korean firm. (Agence France Presse 13-March-2000) =============== M A L A Y S I A =============== ADVANCE SYNERGY BHD: Annual loss expected ----------------------------------------- Advance Synergy Bhd is expected to make a loss of about RM2.3 million from the disposal of its 30 per cent stake or 72,000 shares of US$100 (US$1 = RM3.80) each in Gulf Petroleum Co (Sudan) Ltd. This represents a total loss per share of 68 sen for two financial years 1999 and 2000. In its response to a Kuala Lumpur Stock Exchange query regarding the disposal by its wholly-owned subsidiary, Synergy Petroleum Incorporated, the group said it has entered into a sale and purchase agreement (SPA) with Mr Salah Idris, a Sudanese businessman, for the disposal of the block for US$8.2 million on May 2 1999. Under the terms of the agreement, the purchaser was required to make an initial non-refundable payment of US$4.1 million in cash, representing 50 per cent of the total consideration within 15 days from the date of the SPA. The remaining US$4.1 million was to be paid within six months from the date of the agreement. However, as agreed, if the purchaser defaults in the payment of the remaining 50 per cent of the consideration, the purchaser is deemed to have purchased only 15 per cent of the equity in Gulf Petroleum comprising 36,000 shares. The sale consideration, according to Advance Synergy, was arrived at on a willing-buyer-willing-seller basis after taking into consideration the net tangible assets of Gulf Petroleum. The principal activities of Gulf Petroleum are oil and gas development and production. It has been awarded the rights by the Government of Sudan to develop the Adar-Yale oilfield in Block 3 of Melut Basin in Sudan. The rights awarded is under a Petroleum Production Sharing Agreement (PPSA) dated August 17 1995. The PPSA for the development and production of hydrocarbon is for aterm of 25 years with an option to renew for an additional five years. Advance Synergy said there were no liabilities assumed by the purchaser arising from the disposal as Gulf Petroleum shares were disposed free from all liens, charges and encumbrances. The group also said that the disposal did not require its shareholders' approval. The investment in Gulf Petroleum was made in June 1996 and the total cost of this investment amounted to US$8.8 million. Gulf Petroleum has yet to start commercial operations and the company's audited net tangible assets as at December 31 1997 were US$20.40 million. Advanced Synergy also informed the KLSE that in its opinion, the disposal of 30 per cent stake in Gulf Petroleum is in the best interest of the group. The market capitalisation of the group based on the weigthed average market price of 81 sen per stock unit for the five market days prior to the date of the SPA was RM273.61 million. (New Straits Times 13-March-2000) RENONG: UEM to raise RM3.75b through listing of Plus ---------------------------------------------------- United Engineers Malaysia will undergo the complicated task of listing its highway operator Plus to raise at least 3.75 billion Malaysian ringgit (S$1.7 billion) instead of forcing Halim Saad to buy its Renong shares. At the same time, parent Renong will sell its 12.25 per cent stake in Commerce Asset Holding Bhd, an easier exercise that could generate an exceptional gain of RM1 billion and increase its net tangible asset by 42 sen. The proposed divestment is part of the group's plan to raise funds to repay the RM8.4 billion owed to Plus, a wholly-owned subsidiary of UEM. UEM managing director Ramli Mohamad said: "Clearly it makes no sense for UEM to allow the Plus bonds to run to full maturity in 2006 if we can afford to reduce debt by repaying them earlier, particularly as UEM and Renong will jointly owe a total of RM16 billion if we allow interest accumulation to run over the full seven-year term. It also locks up UEM's assets for seven years and inhibits our potential for future growth." Plus -- the owner of the tolled highway along Malaysia -- had issued the bonds last year to shave Renong's short-term debts of RM5.4 billion and UEM's obligations of RM3 billion. The early redemption of the zero-coupon bonds with a high yield of 9.4 per cent will boost their earnings due to the substantial interest savings. The groups have appointed Merrill Lynch (Singapore) to advise them. Dr Ramli said UEM has received the mandate to divest up to 30 per cent of Plus. He said the sale of a 25 per cent stake in Plus could raise RM3.75 billion based on its estimated value of RM15 billion. But it won't be easy. First, the listing of Plus would breach Malaysia's chain-listing rule as the subsidiary contributes over 70 per cent to UEM's bottom line -- higher than the cap of 50 per cent allowed. "We believe there's a way and it can be done," said Dr Ramli. Second, Plus needs the nod of its creditors before it can go public. But UEM did not feel the need to ask Renong chieftain Halim Saad to fulfil his promise to buy the Renong shares from UEM if Renong remained below RM3.24 between February this year and next February. Renong closed at RM2.94 yesterday. Dr Ramli expressed confidence that Renong's share price would surpass UEM's cost of holding the shares. "The upward movement is quite real. Why should we sell at RM3.24 when we can sell it higher?" he said. (Singapore Business Times 14-March-2000) ===================== P H I L I P P I N E S ===================== NATIONAL POWER CORP.: Losses hit P4B in '99 ------------------------------------------- National Power Corp. last year posted total losses of P4 billion exceeding by about the previous year's P3.6 billion, preliminary figures of the power company showed. For the first nine months of the year, Napocor losses reached P3.1 billion. Napocor president Federico Puno said the agency's poor financial performance could be traced to low electricity sales. He noted that Napocor's electricity sale declined by an average of 3.1 percent a month from January to September. The official said that every percentage point decline in electricity sales would translate to millions of pesos in losses for Napocor. Puno said the agency was still finalizing its books . He said revenues from other sources, including the one-day power sale, have yet to be taken into account. Puno said the 7.9-centavo per kilowatt-hour increase in basic power rates which took effect in July did not help in averting further increases in the power agency's losses. Interest expenses mainly on foreign currency-denominated loans, he added, further dragged the power company's financial performance last year. As of September last year, Napocor's electricity sales dropped to 27,205.7 gigawatt-hours from 28,078.6 gwh. The agency blamed the economic slump that has brought down demand for Napocor's declining sales. Napocor's coffer was nearly drained in the first three months of the year when its net loss reached P2.7 billion. Last year, Napocor registered a net loss of P3.6 billion primarily due to the peso devaluation that pushed up the cost of servicing its loan obligations. (Philippine Daily Inquirer 14-March-2000) PILIPINO TEL.CORP.: SEC orders fine paid ---------------------------------------- Troubled cellular phone provider Pilipino Telephone Corp. (Piltel) has been asked to pay a fine by the corporate watchdog for its failure to put up a sinking fund necessary to meet the redemption price of redeemable shares. In a memorandum, the Securities and Exchange Commission (SEC) ordered Piltel -- a cellular subsidiary of telecom giant Philippine Long Distance Telephone Co. -- to pay 10,000 Philippine pesos (US$200 at PhP40.859:US$1) in fines for its inability to establish the sinking fund required under SEC regulations. The commission's order followed the complaint filed by Philippine Commercial Capital, Inc. (PCCI) -- one of Piltel's institutional investors -- against the cellular phone company. "We find it unfortunate that Piltel has, instead of meeting the issue squarely, used the "trust fund doctrine" as a device to escape from their legally mandated responsibility. Worse yet, they have pointed the accusing finger at the previous management for the failure to establish the sinking fund," PCCI said. Under the Commission's rules governing redeemable and treasury shares, a sinking fund should be set up by a corporation, "where cash is gradually set aside in order to accumulate the amount necessary to meet the redemption price of redeemable shares at special dates in the future." (Business World 14-March-2000) ================= S I N G A P O R E ================= TONG TIEN SEE CONSTRUCTION: Placed under judicial mgmt. ------------------------------------------------------- Nam Lee Pressed Metal Industries Ltd said one of its customers, Tong Tien See Construction Pte Ltd, has been placed under interim judicial management. The company has on-site equipment worth about 3.8 mln sgd, Nam Lee's managing director Yong Kin Sen said in a statement. "The amount that may have to be written off in the profit and loss account will depend on the amount to be recovered," Yong said, adding that a retention sum of about 1.58 mln sgd is due to the company from Tong Tien See. "This retention sum has not been recorded as revenue and will not have an impact on the current year profit," Yong added. (AFX News Limited 13-March-2000) VENTURE MANUFACTURING: Leading tech stock falls 20 percent ---------------------------------------------------------- Venture Manufacturing shares plunged 20 per cent as disappointed investors reacted to last Friday's announcement of lower-than-expected 1999 net profit growth of 31.3 per cent. The stock closed $5.60 lower at $22.70 yesterday, the second top loser on the exchange in dollar terms. Venture's sharp fall was largely responsible for the Singapore Electronics Equities Index's 19-point tumble to 223.72 yesterday. Of the 21 stocks on the index, 16 fell, three rose, and two were unchanged. NatSteel Electronics was the second biggest loser on the index, falling $1 to $11.40. On the other hand, Creative Technology rose $1.50 to hit $54. Analysts said technology stocks in Singapore and the region were hit yesterday as concerns over stretched valuations on US' tech-laden Nasdaq exchange filtered through the region. Talk of analysts downgrading US Internet stocks, as well as jitters over Taiwan's political situation, also dampened sentiment in the sector. Between Jan 3 and last Friday, Venture's shares had jumped 37 per cent on optimism over its results and its acquisition strategy. Now investors were selling down the shares to a more realistic level, said analysts, who had expected Venture's 1999 results to rise 43.5 per cent. While the company emphatically denied that last year's component shortages had affected the company, it had attributed its lower-than-expected results to product changeovers in the second half. The company has signed up several new customers in the communications space, and analysts widely believe top networking company Cisco is one of them. While most analysts revised their 2000 estimates for the stock and lowered their fair-value ranges to between $19 and $25, the company's globalisation and e-fulfillment strategy won their thumbs-up. The company's plan to invest $34 million to expand capacity, as well as its stated desire to grow further through acquisition, should also allow Venture to trade above its fair value, said analysts, who expect the company to continue to deliver steady earnings growth. "To me, what happened with Venture in the second half is not much of a worry," said RHB-Cathay analyst Edwin Goh, who suggested that the company's margins may have been affected by the lack of cheaper overseas production facilities. "It's a thing of the past. I don't see it happening this year." He has an "outperform" on the stock and expects Venture's 2000 net profit to rise about 30 per cent. More bullish on the stock was Kim Eng Securities, which has a fair value estimate of $32. "We are positive on its more aggressive stance towards establishing a global footprint," it said in a report. "We think this would propel it to be a truly global player. Any share price weakness due to the earnings disappointment is seen as a good chance to accumulate the stock." (Singapore Business Times 14-March- 2000) =============== T H A I L A N D =============== IRIDIUM SOUTHEAST ASIA: Operator closes down, demise near --------------------------------------------------------- The local operator of the Iridium service has quietly shut down, ahead of Friday's expected demise of the global satellite communications project. Iridium Southeast Asia announced an early-retirement programme for its 200 staff with an offer of two to eight months' compensation, said a source at Thai Satellite Telecommunications (TSC), the parent company. Most of the staff accepted the package but about 60 remained with the company, the source said. In a letter to customers who had bought the costly Iridium phones, Motorola said it would continue support for Iridium until Friday, when the project's last-ditch financing runs out. Motorola was the primary backer of the $5-billion Iridium project, which filed for US bankruptcy protection last August. "Unless a qualified buyer comes forward and provides additional funding by March 15, we do not expect Iridium service to be available after 11:59 pm on March 17," Motorola said. If Iridium does not find fresh funds, it will start dismantling its 66-satellite system, leaving subscribers with useless phones. Motorola said the units would not work with other satellite telephone systems. Locally,the president of Thai Satellite Telecommunications, Piyabutra Vasudhara, quit the company quietly soon after realising that Iridium appeared beyond salvaging. Iridium Southeast Asia is a joint venture of Thai Satellite Telecommunications, DDI of Japan and Kyocera Corp of Korea. It held a 3.7% stake in the debt-ridden Iridium consortium. Thai Satellite Telecommunications, a subsidiary of United Communication Industry Plc Group, is among the 17 investors worldwide in the Iridium project led by Motorola. The Thailand-based company is the gateway operator and service provider for Southeast Asia, Australia, New Zealand and the Pacific Islands. Iridium, launched amid a major worldwide promotional blitz in late 1998, struggled to sign up subscribers from the start. Critics said the phones, which cost as much as 120,000 baht, were too bulky and airtime charges were too high. Iridium said yesterday it had secured $3 million from its lenders which would keep it afloat until Friday. Last week, the prospect of a final liquidation drew nearer when cellular communications pioneer Craig McCaw and his Eagle River investment group scrapped a plan to buy Iridium. Motorola set up a web site for information on Iridium service at14-March-2000) SAMITIVEJ PLC: Notifies SET of civil suit filed vs. it ------------------------------------------------------ By virtue of a writ of the Central Intellectual Property and International Trade Court, Samitivej Public Company Limited has been informed that the Sanwa Bank (by the representative office, Bangkok) is filing the Civil case to the Court on the allegation that the Samitivej was in breach of the loan agreement. The case is the Black case number Kor. Gor. 26/2543 between the Sanwa Bank (by the representative office, Bangkok), the Plaintiffs, and the Samitivej Public Company Limited, the Defendant. The Plaintiffs claimed for compensation amounting to 87,969,102.23 baht. Samitivej, therefore, through Narongsak Kiatikajornthada, M.D., President, hereby notifies the Stock Exchange of Thailand of the threatening litigation, pursuant to the provisions of the Stock Exchange of Thailand. (Thailand Stock Exchange 14-March-2000) TELECOMASIA CORP.: Tells SET of closing shareholders book --------------------------------------------------------- Telecomasia Corporation Public Company Limited, throught Mr.Athueck Asvanund, Vice Chairman and Group General Counsel, gives notification of the date of closing the shareholders registration book. Reference is made to the Extraordinary Meeting of Shareholders No. 1/2543 of TelecomAsia Corporation Public Company Limited ("the Company") held on February 14, 2000 which approved the financial restructuring plan. As part of the plan, the Company agreed to increase its registered capital by issuing Baht 702,000,000 preference shares with a par value of 10 Baht each offering to Kreditanstalt f?r Wiederaufbau("KfW") and/or wholly-owned subsidiaries of KfW and/or the Thai Trust Fund, which will be established for the Company's financial restructuring plan, at the total offering price of USD 150 million. KfW granted Purchase Rights to all shareholders of the Company who own at least 4 ordinary shares in the Company and whose names appear in the Companys on the Record Date, details as notified therein. In order to ascertain number of preference shares offering to KfW and/or wholly owned subsidiaries of KfW and/or the Thai Trust Fund and to determine the names of shareholders who will be eligible to receive the Purchase Rights given by KfW as mentioned above, the Company has to close the Shareholders Registration Book to ascertain the number of the Company's shares held by foreign and Thai Shareholders and to ascertain the names of shareholders who will be eligible to receive the Purchase Rights given by KfW. Hence, the Company would like to notify the closing date of Shareholders Registration Book on March 24, 2000 from 12.00 noon onwards until on March 31, 2000 for the aforesaid specification to all shareholders of the Company who own at least 4 ordinary shares during the said period of Closing Shareholders Registration Book will be eligible to receive the Purchase Rights granted by KfW. However, the subscription of KfW and/or wholly owned subsidiaries of KfW and/or the Thai Trust Fund including the said Purchase Rights given by KfW will commence upon the consummation of all of conditions precedent as provided in the Subscription Agreement between KfW and the Company including the complete and final Terms and Material Information of Purchase Rights. (Stock Exchange of Thailand 13-March-2000) THAI PETROCHEMICAL INDUSTRY PLC: Losing PR battle? -------------------------------------------------- A series of public-relations blitzes by Thai Petrochemical Industry Plc (TPI) since last week indicates that the country's largest debtor may be losing the war in the court. A legal source said Prachai Leopairatana, the chief executive officer of TPI, held a meeting with his family members last week and told them to prepare for the possibility that TPI could lose its court battle against creditor banks. Early last week, Prachai was still confident about the outcome of the historic bankruptcy case, the source said. The Central Bankruptcy Court is deliberating whether TPI, which owes creditors US$3.5 billion, is insolvent or not. So confident about the case was Prachai that he did not present himself at a witness hearing on March 1-2, allowing Wachirapunthu Phromprasert, his chief financial officer, and other aides to deliver most of the testimonies, the source added. If the creditors wanted a compromise, they would have to agree with Prachai on a US$900 million debt forgiveness or haircut - not US$400-US$600 million as earlier raised at the negotiating table. But events changed quickly, forcing TPI to come out with a desperate defensive strategy. On March 8, the company sent a letter to the Stock Exchange of Thailand to inform the investing public about the latest progress in the legal battle. It also appealed to nationalist sentiment, arguing that the benefits of the country were at stake if TPI were to be taken over by the foreign creditors who were keen to chop its assets into pieces for liquidation. The following day, Wachirapunthu held a news conference to discredit Ferrier Hodgson Ltd, which is the 99 per cent shareholder of Affective Planner Co. Affective Planner is earmarked by Bangkok Bank to replace Prachai as planner of TPI's rehabilitation programme. Again, Prachai avoided the public limelight, failing to show up at the news conference to present his side of the story. These incidents have been seen as an indication that Prachai would try to remain planner of TPI even though he realised he could lose the court battle over the question of insolvency. The Central Bankruptcy Court is scheduled to hand down its decision tomorrow as to whether or not TPI is insolvent. It is also expected to decide who should become planner of the troubled company. The case has become one of the hottest topics in Thailand, with far-reaching implications on corporate restructuring. Since the beginning of the year, sentiment in the Thai market has cooled significantly due to the wrangling over TPI. Prasarn Trairatvorakul, secretary-general of the Securities and Exchange Commission, said investors were closely watching the TPI case because the ruling would affect the 60 debt-restructuring cases involving listed companies. At issue is whether TPI is insolvent or not. The creditors contend that its liabilities exceed its assets. According to a Standard Chartered Bank research report: "This comes down to an issue of valuation method. TPI values its assets on a replacement cost basis which results in the company still being solvent - despite market rates of exchange being much worse than used in the current balance sheet. "Meanwhile, creditors look at the business as a going concern. Thus their methodology focuses on an analysis of the company's likely cash-flow stream and the ensuing asset disposal. Therefore, a key feature of the TPI case will be the method by which the bankruptcy court values the company's assets, replacement cost, supporting TPI, or cash flow and asset disposal, for the creditors." (The Nation 14-March-2000) THAI PETROCHEM.INDUS.: Bad loans, little improvement ---------------------------------------------------- About 2,280 borrowers representing nearly one-quarter of the total outstanding loans held by financial institutions are expected to enter bankruptcy proceedings, after failing to reach out-of-court settlement, according to the Bank of Thailand. The latest non-performing loan figures showed little improvement, with bad loans totalling 2.08 trillion baht at the end of January, or 38.68% of total loans, compared with 2.09 trillion and 38.91% the month before. Lt Yodchai Chusri, director of the Corporate Debt Restructuring Advisory Committee, said less than 1% of the total restructured loans had turned non-performing again. Out of 702 major borrowers targeted by CDRAC, 362 cases, involving loans of 672 billion baht, will be brought into court procedures, he said. Out of 1,057 small-sized loans, 729 borrowers with total debts of 300 billion baht would enter legal procedures. "A substantial amount of loans will enter the judicial process. For borrowers which refuse to co-operate, CDRAC urges financial institutions to protect their rights and seek legal remedies," Lt Yodchai said. The central bank expects 81 major restructuring cases to be finalised in April. The central bank has set a target of 16,000 restructuring cases per month. The average to date has been 12,000 cases per month, Lt Yodchai said. Finance Minister Tarrin Nimmanahaeminda said loans totalling 50 billion baht were restructured in January, although non- performing loans showed a drop of just seven billion. He said the difference stemmed partly from different timing when new loan contracts were signed and finalised. Economic ministers yesterday directed the Bank of Thailand to study further the rate of new bad loans and restructured loans which turned bad again. Altogether, 11,107 borrowers had their loans restructured in January, bringing the total to date to 184,816 cases with loans worth 1.126 trillion baht. At the end of January, loans totalling 1.137 trillion baht were being restructured, involving 26,273 borrowers. Some 843 borrowers were in the process of drafting new contracts, with loans worth 452.5 billion baht. Another batch of loans worth 147.2 billion baht was being resolved in the courts. Total non-performing loans stood at 2.08 trillion baht in January, or 38.68% of total outstanding loans, compared with 2.09 trillion or 38.91% in December. Private banks reported non-performing loans of 885.6 billion baht at the end of January, or 30.67% of total loans, compared with 885.4 billion and 30.59% posted in December. State banks reported bad loans of 1.04 trillion baht, or 62.18%, in January, versus 1.05 trillion and 62.87% in December. Foreign banks reported bad loans of 60 billion baht in January, or 9.33% of total loans, compared with 61 billion and 9.81% in December. Non-performing loans for the banking sector stood at 1.99 trillion baht, or 38.21%, in January, compared with two trillion or 38.55% in December. Finance companies reported bad loans of 95 billion baht in December, or 52.15% of total loans, compared with 90.1 billion, or 49.21%, in December. Investors reacted poorly to the latest figures, with the Stock Exchange of Thailand index losing 12.15 points yesterday to close at 390.15. Trade was relatively thin at 4.6 billion baht. Analysts said many investors were sidelined ahead of tomorrow's verdict on the Thai Petrochemicals Industry restructuring case, viewed as an acid test of bankruptcy laws. (Bangkok Post 14-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 Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Darryl Henning, Managing Editor, Feliz Ordona and Cristina Pernites, Editors. Copyright 2000. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $575 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. 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