---

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

                           A S I A   P A C I F I C

              Friday, March 17, 2000, Vol. 3, No. 54

                                  Headlines


* A U S T R A L I A *

131Shop.com.au: Drops $3.3 million in six months
eBET: Investors still staking their shirts on loss-maker
ESMERALDA EXPLORATION LTD: Files for voluntary admin.
MACMAHON HOLDINGS: Drastic changes after half-year loss
PACIFIC DUNLOP: Pullout of US's Ansell float sinks stock
PRIME TELEVISION: Loses $2.5M in first half
REINSURANCE AUSTRALIA CORP: Doubts life after run-off
REINSURANCE AUSTRALIA CORP: Cutting back on contracts
WMC: In buyback of shares to prop up share price


* C H I N A  &  H O N G  K O N G *

ANKOR GROUP: Renren buys troubled Ankor in $229M deal
FULLRANGE INDUSTRIAL LTD: Facing winding up petition
GKC HOLDINGS LTD: Reports resumption plans to HKSE
PALIBURG HOLDINGS: Creditor pact obviates HQ-tender sale


* I N D O N E S I A *

PT DHARMALA SAKTI SEJAHTERA: Reports debt-payment delay
PT TEXMACO: Gov't says it must continue operating


* J A P A N *

DDI CORP.: To book 12.9B Yen extra loss on Iridium closure
HEISEI POLYMER CO.: Expects 466M Yen net loss
KUBOTA CORP.: To close bathroom assembly plant
MITSUBISHI RAYON CO.: US anti-trust charges threaten harm
TOHO RAYON CO.: US anti-trust charges threaten harm
TORAY INDUSTRIES INC.: US anti-trust charges threaten harm
TOSHIBA CORP.: To book 330B Yen loss for pension gap
TSUTSUNAKA PLASTIC INDUS.: Braces for group net loss


* K O R E A *

DAEWOO GROUP: SGIC to begin Daewoo bond guarantee payoff
DAEWOO MOTOR: General Motors looking for Korean partner
HYUNDAI SECURITIES: Speculation over its reshuffling
SAMSUNG MOTOR: Suppliers ask creditors to deal with Renault


* M A L A Y S I A *

FABER GROUP BHD: Creditors approve debt rehab
PARK MAY BHD: Creditors approve debt rehab


* S I N G A P O R E *

CLOB INT'L: Brokers are sweating it to meet Clob deadline
IPC CORP: Creditors pass debt scheme


* T H A I L A N D *

PTT PETROCHEMICAL CO.: Reports its dissolution to SET
THAI AIRWAYS INT'L: Gov't nod to 1st step to privatization
THAI OLEFIN CORP.: Reaches agreement on debt restructure
THAI PETROCHEM.INDUS.: Court decision favors creditors
THAI PETROCHEM.INDUS.: Ct.ruling ineffective on stock slide


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

131Shop.com.au: Drops $3.3 million in six months
------------------------------------------------
The Internet portal and content provider 131Shop.com.au has
joined a growing list of technology stocks that have
unveiled losses, yesterday reporting a net loss of $3.34
million for the six months to December.

The Brisbane-based group recorded sales of $2.77 million
for the period but also an abnormal charge of $600,000 for
the reacquisition of its dealerships in Sydney, Perth and
Melbourne.  Investors gave a lukewarm response to the
result, pushing 131Shop.com.au's shares one cent lower to
43.5 cents.

The executive director, Mr Trevor Gardiner, said the
company would still meet its prospectus forecast of a net
loss of $620,000 for the full year despite sinking more
than $3million into the red for the first half. "We are
confident that we are still keeping on track to meet those
targets, and in fact we will probably do better than
prospectus forecasts."

Mr Gardiner said 131Shop.com.au had embarked on an
aggressive marketing and advertising campaign to establish
its brand name in the market and would reap results in the
second half. "We have a very high profile in Queensland,
with a 87 per cent recognition rate in Brisbane, and we are
also strong in Sydney and Melbourne." (The Age  16-March-
2000)

eBET : Investors still staking their shirts on loss-maker
---------------------------------------------------------
The online wagering and fixed odds business eBet yesterday
announced a net loss of $1.9 million for the first half
after a delay in the launch of its Internet lottery
business affected group sales.

Total revenue for eBet was $830,000 for the first six
months of the financial year, generating a loss before
abnormal items and tax of $1.82 million.  But investors
ignored eBet's mounting losses, preferring to focus on its
potentially lucrative expansion into overseas markets and
the company's claim that its number of registered online
users had shot up 252per cent.  Shares in eBet rose six
cents, or 8.57per cent, to 76 cents.

The managing director of eBet, Mr Keith Cullen, said there
would be a significant turnaround in the company's fortunes
in the second half, with two recent acquisitions - Netcash
and Dataview - adding at least $1 million in revenue for
the full financial year.  He said Netcash's unaudited
accounts showed revenues of $1.6million for the first half,
while Dataview's revenue was $871,410 for the period.

Coms21 - which controls 45per cent of eBet - announced a
net profit of $126,000 for the first half yesterday, up
from a net loss of $2.5million for the previous
corresponding period. (The Age  16-March-2000)

ESMERALDA EXPLORATION LTD: Files for voluntary admin.
-----------------------------------------------------
An Australian mining firm accused of spilling cyanide into
river systems across Eastern Europe has begun bankruptcy
proceedings, sparking fury from Hungary which claimed
Thursday it was trying to avoid responsibility.

Esmeralda Exploration Ltd. filed for voluntary
administration, the first step in declaring itself
bankrupt, with the Australian Stock Exchange late Wednesday
in anticipation of multi-million dollar compensation
claims.

"This is just a trick on their side to not pay compensation
for what they are responsible," the head of the Hungarian
parliament's environmental protection committee, Zoltan
Illes, told ABC radio.

He said if the company could not or would not pay up, his
government would pursue through international courts the
banks and investors who backed those responsible for the
spill.  With Romanian state firm Remin, Esmeralda was a 50
percent partner in the Baia Mare gold tailings mine which
spilled 100,000 cubic metres of cyanide-tainted water into
river systems in Romania, Hungary, Yugoslavia and Ukraine
six weeks ago.

Thousands of fish died and the drinking water of more than
two million people was poisoned. Academics have also
claimed unique species of birds and insects could become
extinct because of the spill.  Esmeralda has consistently
denied any direct link between it and the poisoning of the
fish and the pollution.

Kim Strickland, the administrator appointed under
Australia's corporations law, told AFP that Esmeralda had
less than 100,000 dollars (62,000 US) in liabilities.
Other than its interest in the mine, its only assets were a
property in Bucharest and, through subsidiaries, three
mining tenements in Romania.  He refused to comment on
Illes' claims, saying a creditors' meeting would be held
within a month and the position would then be clearer.

"At this particular time the Hungarian government has not
approached me. They are not a creditor or shareholder of
the company," he said. "Mr Illes has formed an opinion and
I have no comment."

Earlier, a spokesman for Hall Chadwick, the administrator's
company, said liability would be clearer once environmental
reports, by the United Nations and European Union among
others, had been completed.

"The problem is that while there have been rumours around
that there will be various claims, maybe in the tens or
hundreds of millions of dollars against the company, the
level of liability is undetermined," he said.  "That's one
of the main reasons for putting it into administration and
assessing these environmental reports so we can determine
if there are any (other) liabilities."

The worst case scenario for Esmeralda would be
recommendations in the reports that the project "never
continue", which could render its shares worthless.
Hungary last month announced it would take court action to
seek compensation from the mine's owners.

Illes said the Hungarian government was also seeking
compensation from the Romanian government and negotiations
were under way.  He said it would also pursue Esmeralda's
financial backers despite the protection provided by
voluntary administration.

"We know that this is not only an Australian company but
behind it are some investors, some internationally
recognised banks, who provided loans for the activities of
the Australian firm," he said.  "So I believe they are also
responsible for damage which was caused here in
Central-Eastern Europe."

Hungarian officials called the spill the worst ecological
disaster in the region since the 1986 Chernobyl nuclear
plant accident.  (Agence France Presse  16-March-2000)

MACMAHON HOLDINGS: Drastic changes after half-year loss
-------------------------------------------------------
Retreat from Asia, less reliance on open-pit mining, and
new blood would drive future profitability for struggling
mining contractor Macmahon Holdings, new chief executive
Nick Bowen said yesterday.

Revealing a net loss of $22.4 million for the December
half, the former Eltin chief said drastic change was needed
to revamp the company.

"We have in recent weeks placed the operational and
financial operations of the entire group under the
microscope," Mr Bowen said.  "As part of this overhaul, it
was decided that all necessary remedial action be taken in
the December half results towards improving Macmahon's
future operating performance."

Consequently, the value of non-core assets in Indonesia and
Malaysia generated an abnormal loss of $25.9 million,
compounding the effect of a 33 per cent fall in pre-
abnormal net profits to $3.4 million despite a 1 per cent
lift in revenues to $244.5 million.

Current chairman David Munt will also step down, and Mr
Bowen promised further board changes would help
reinvigorate the business.  The decision comes six months
after angry shareholders demanded the board resign
following last year's $16.5 million loss.

But taking a "less is more" approach to the future, Mr
Bowen said refocusing on higher margin activities would
generate greater profits from lower revenues.

Mr Bowen said non-core Asian assets, primarily sand mining
and quarrying businesses and palm oil and property
investments already written down to nil, would be sold over
the next year, while revenues from low-margin open-pit
mining contracts would be cut from 65 per cent to 55 per
cent of total group revenue by June next year.

Instead, Macmahon would focus on underground mining and
civil construction contracts where the company had
specialist expertise and margins were greater. Overheads
would also be cut by 15 to 20 per cent, he said, flagging
office closures and a likely head office shift from
Adelaide to Perth.

Only then could Macmahon hope to cut net debt to equity
from 173 per cent to 100-120 per cent during the next 18
months.  Mr Bowen said profitability gains were not likely
to be fully realised for at least a year, though the full-
year pre-abnormal net return should exceed $6 million. (The
Australian  16-March-2000)

PACIFIC DUNLOP: Pullout of US's Ansell float sinks stock
--------------------------------------------------------
Pacific Dunlop has finally pulled out of its proposed
Ansell float in the United States, confirming weeks of
market speculation that had sent its stock into a tail-
spin.

With analysts yesterday claiming that the float always
looked a non-starter PacDun directors have announced moves,
without specifically identifying any, to boost the
conglomerate's share price which they admit has sagged to
an "unacceptable level."

In a carefully worded statement released yesterday, the
directors said: "A better value outcome must be delivered
for shareholders, and the company is exploring
alternatives."

PacDun's managing director, Mr Rod Chadwick, said that the
company was now negotiating with other parties but would
not go into details about the reshaping of the group which
makes products ranging from Ansell condoms to Goodyear
tyres.  Speculation about a corporate play and break-up of
the underperforming conglomerate has been accelerated since
the Disney-backed US Shamrock Holdings last month announced
it was increasing its stake in PacDun.

Apart from Shamrock, other potential parties to a corporate
play reportedly include businessman Mr Solomon Lew and Mr
Kerry Packer. A former PacDun food chief, Mr Grant Latta,
has also reportedly been talking to various parties about a
consortium moving in on the troubled group.  Mr Chadwick
said yesterday the company was planning to boost the share
price but he was not giving anything away.

"Our whole objective is to try and establish shareholder
value as quickly as possible," Mr Chadwick said yesterday.
"Those discussions are obviously subject to confidentiality
restrictions and they offer a range of potential outcomes.
I can't be definitive about the time-line required to
conclude those."

When asked whether this made the company more vulnerable to
a takeover now that 100 per cent of Ansell was locked away
again, he replied: "If it becomes more vulnerable, then at
least the shareholders should get a higher value for it."

As to his own future, which has in itself been subject to
market speculation, he said: "It's obviously not my call
but I'm very committed to doing what we believe we have to
do."

In November, PacDun announced it was spinning off 20 per
cent of its flagship Ansell division on the New York Stock
Exchange in an attempt to raise $US175 million ($A286
million) and boost its flagging share price.  But the price
went into free-fall instead and plummetted by as much as 38
per cent, hitting an all-time low of $1.49 on 3 March.

Six weeks ago, market rumors forced PacDun to issue a
statement claiming the float was definitely on.
Investors were not surprised by yesterday's announcement.
The share price barely moved during the day and closed
unchanged at $1.62.  Analysts said one of the problems with
the float proposal from the start was that Ansell
Healthcare Inc was simply too small when compared to other
US companies.

"It was obvious from the day they announced it that it was
going to be a tough one," one said yesterday.

But Mr Chadwick cited other reasons which included the
falling euro and the flight of capital from "old economy"
stocks.  A combination of the two, he said, would produce
lower multiples and reduced earnings.  With one-third of
Ansell's sales in euros, every one-cent fall in the
currency has sliced more than $1 million off the revenue
line, he said

The continuing squeeze on the price of examination gloves
was another factor behind the decision.  Merrill Lynch,
which was managing the float had told the company that the
IPO could be completed and trade satisfactorily, but at a
lower price than first anticipated.

"Back in November, it looked like a good idea but things
have changed," Mr Chadwick said.  "It's great with
hindsight to look back and say what the hell is different
but how many industrial companies in Australia for instance
are trading at a higher price today than they were in
November?  The `macros' indicated to us that this was
certainly the best decision to make for our shareholders in
light of the current market conditions."

Analysts said that while a takeover was a possibility,
there were a number of poison pills for raiders including
the residual risk of the Telectronics litigation and the
difficulty getting rid of underperformers like the GNB
batteries business.  Apart from this, the shift to the "new
economy" meant that there were now potentially more
industrial companies with falling share price multiples
going cheap.

"There are a lot of old economy companies around the globe
that are now on the table," said one analyst. "There are
plenty to choose from."

Pacific Dunlop yesterday announced that Mr Robert McInery,
a former General Motors marketing director, had been
appointed the new chief executive of its South Pacific
Tyres business. (The Age  16-March-2000)

PRIME TELEVISION: Loses $2.5M in first half
-------------------------------------------
Prime Television is expected to confirm today its exit from
the Argentine TV industry with the sale of its 50 per cent
stake in Azul TV.

Spanish telephone company Telefonica has been tipped as the
favourite to buy the Azul stake after it bought the other
half of the Buenos Aires TV station late last year. Media
analysts estimate Prime will receive between $80 million
and $90 million for its stake, which has been up for sale
for 12 months as mounting losses caused investor concern
and a sharp drop in Prime's share price.

Prime chairman Mr Paul Ramsay was scheduled to announce the
sale yesterday along with the first half results but the
sale was held up because of "procedural matters". Prime
also requested a halt to its shares pending an
announcement. Prime shares last traded at $1.85 yesterday.

On Tuesday the stock jumped almost 9 per cent on the
expectation of the sale announcement.  Continued losses at
Azul TV pushed Prime into the red in the six months to
December. The regional television broadcaster reported a
net loss of $2.52 million versus a net profit of $5.31
million a year ago.

Azul had total losses of $US6.2 million ($10 million) for
earnings before interest, tax, depreciation and
amortisation. Prime's shares of these losses was $US3.2
million.  Despite the loss the interim dividend was
maintained at 4c a share, fully franked and payable on
April 17.

Prime chief financial officer Mr Darryl Guihot said Azul's
ratings improved during the half but the recession in South
America had affected its outlook.  Mr Guihot said the first
half result was also affected by an increase in affiliate
fees paid to the Seven Network as well as the effect of new
competition on its West Australian regional TV operator
GWN.

Privately-owned WIN TV is believed to have captured about
20 per cent of the advertising market from GWN since it
launched a new WA regional network in March 1999. Until
then GWN had a monopoly on the market.  The result was also
affected by continued losses from its New Zealand
operations, which had EBITDA losses of $4.2 million. The NZ
business is not expected to break even until 2001-2002.
Sales rose 6.27 per cent to $137.49 million.

Mr Guihot said that advertising sales from TV operations in
regional NSW and Victoria grew at about 6 per cent during
the first four months of the half.  "The new calendar year
has seen advertising grow at the same rate that it was in
July to September," Mr Guihot said. He said Prime had yet
to see much dot.com advertising. (Sydney Morning Herald
16-March-2000)

REINSURANCE AUSTRALIA CORP: Doubts life after run-off
-----------------------------------------------------
The Reinsurance Australia Corp board said yesterday it was
unsure whether it would ever trade again once its present
run-off process was completed.

"ReAC is focusing on administering the run-off process to
maximise value for its shareholders," it said. "This
process could take some time and at this stage no decision
has been taken as to what happens after that process."

The home-grown reinsurer has suffered crippling losses due
to an unprecedented run of natural and man-made disasters
worldwide.  Yesterday it announced an audited net loss of
$466.61 million for the 12 months to 31December, a result
that included a $93.6 million net abnormal loss.

ReAC stopped writing new business last year and prepared
its 1999 accounts as if it would move into run-off. ReAC
has spent the past few months trying to reduce its active
risk profile but remained exposed to events that might
occur in the current year due to longtail business written
in previous years.

Last month, ReAC announced an estimated unaudited loss
before abnormal items of $377 million for the year to
31December. That estimate included losses of $185 million
and further net adverse developments in the second half on
exited classes of business and prior period claims of $76
million.

Further abnormal costs of $93 million were identified
associated with a decision to prepare for run-off.
Last month, ratings agency AM Best downgraded ReAC from B++
(very good) to C- (weak). (The Age  16-March-2000)

REINSURANCE AUSTRALIA CORP: Cutting back on contracts
-----------------------------------------------------
Embattled Reinsurance Australia Corp has closed its
overseas offices and cut back its staff numbers as its
continues to wind down its business.

The company yesterday posted a slightly better than
expected full-year audited net loss of $467 million,
meaning its capital reserves stand at $53 million.
After a spate of natural disasters began sucking capital
out of the over-exposed reinsurer, ReAC suffered a ratings
downgrade and heavy losses that put an end to its ability
to write new business.

ReAC is now conducting a managed run-off of its book that
is, it is allowing its outstanding reinsurance contracts to
expire.  In a statement issued with its audited accounts
yesterday, ReAC said it was "actively seeking to reduce its
risk profile" by also moving to withdraw from as many
contracts as possible.

"However, ReAC still has unexpired exposure to events that
may occur in the current year as a result of contracts
predominantly written in prior years," the statement said.

ReAC said there was inherent uncertainty in assessing the
extent of any claims liabilities, but said it had not yet
needed to establish a prudential margin.  Executives would
not speak to the media, but the statement suggested there
was still a grain of optimism at ReAC.

"ReAC continues to review the possibility that strategic
alternatives may emerge and provide the company with the
opportunity to maximise value for shareholders," the
statement said.

ReAC also reiterated its net tangible asset backing of 26›
a share, which has led some speculative investors to bid up
the stock's price to as much as 16› last week. They are
hoping there may still be capital left for shareholders
after the run-off ends.

Yesterday, however, the share price continued its slide of
the last few days, closing down 2› to 10›. But there were
nearly two dozen buyers and just two sellers lining up for
the stock in late afternoon trading. (Australian Financial
Review  16-March-2000)

WMC: In buyback of shares to prop up share price
------------------------------------------------
WMC is to buy back 5 per cent of its shares on-market after
pressure by institutional shareholders to prop up its weak
share price.

The diversified miner will buy back as many as 57.5 million
shares, which at yesterday's closing share price of $6.70
represents an investment of $385 million.

"While the company is committed to reduce outstanding debt,
the improved business performance and outlook provides the
opportunity for a share buyback as part of the company's
overall capital management," WMC said in a statement.

Although institutional shareholders have been pressuring
WMC to use its cash flow to enhance the value of their
investment, the buyback is also being viewed as defensive.
WMC's share price has fallen sharply from its January high
of just below $9, and stockbroking analysts believe this
decline and the continuing strength of its core operations
have made the company vulnerable to a takeover.

News late last week that US aluminium giant Alcoa will list
its shares on the Australian Stock Exchange next month has
revived talk that offshore groups are poised to pounce on
undervalued Australian miners. Alcoa is a 60 per cent
partner with WMC in Alcoa World Alumina.

WMC has nominated Baillieu Stockbroking and Deutsche
Securities to carry out the buyback. It has 12 months to
complete it. (Sydney Morning Herald  16-March-2000)


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

ANKOR GROUP: Renren buys troubled Ankor in $229M deal
-----------------------------------------------------
Renren Media Holdings has agreed to buy troubled Ankor
Group for $229 million in a plan that does not call for an
asset injection.

Renren Holdings president Anthony Cheng yesterday said
Ankor would be committed to raising revenue, but he gave
few details of how the car dealer would carry out this
strategy or become profitable.

Under the transaction, Renren Holdings, which owns 81.4 per
cent of Renren.com, will subscribe to 5.87 billion new
Ankor shares at 3.9 cents each, a hefty 91.6 per cent
discount from its last traded price of 49 cents on March 7
before it was suspended.  That would give Renren Holdings
an 81.56 per cent stake in Ankor.

Controlled by a consortium led by venture-capital companies
JH Whitney and News Digital Ventures, a unit of News Corp,
Renren Holdings controls Renren.com, a Chinese-language
portal targeted at the mainland.  After resuming trade
yesterday, Ankor's share price more than doubled to finish
at $1.17.

Based on yesterday's closing price, Renren Holdings will be
sitting on a paper profit of $64.12 billion.  Ankor, to be
renamed Renren Media, would be a separate business entity,
and Renren.com would not be injected into it, Mr Cheng
said.  However, Ankor's troubled car business would use the
Internet and the Renren brand to improve its marketing and
sales, he said without giving details.

Ankor would also diversify into other Internet and non-
Internet operations as well as software-related businesses
using the Renren brand, he added.  Ankor reported a loss of
$27.7 million in the six months to June 30 last year.
The company had five consecutive years of losses up to
December 31, 1998.

Nonetheless, analysts and brokers were sceptical about the
transaction because of the absence of any solid business
plan.  Jonathan Iu, analyst at SG Emerging Market Equity
Research, warned investors not to get too excited about big
names buying shell companies in Hong Kong.

"I'd be worried about buying the stock under the hope that
something might be done," Mr Iu said.  "I'd be more
interested in the company's business strategies."

Bruce Churchill, representing News Corp, said his company
and Renren Holdings had a financial and strategic
commitment to develop Internet content for the global
Chinese community.  However, Ankor shareholders would be
left out of these investments under the consortium's
current plans.

Mr Churchill, deputy chief executive and chief operating
officer at StarTV, said News Corp's investment in Renren
would not affect its satellite television unit StarTV's
joint venture with Cable & Wireless HKT - a partnership
that intends to provide multimedia content in Hong Kong.

"It's not a zero-sum game, this is a brand new market with
plenty of room," said Mr Churchill. (South China Morning
Post  16-March-2000)

FULLRANGE INDUSTRIAL LTD: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for April 19 on the petition of Lau
Yuk Kuen for the winding up of Fullrange Industrial
Limited. A notice of legal appearance must be filed on or
before April 18.

GKC HOLDINGS LTD: Reports resumption plans to HKSE
--------------------------------------------------
Reference is made to the announcement dated 17th September,
1999 made by The Stock Exchange of Hong Kong Limited (the
"Stock Exchange") in relation to the intended delisting of
the shares of GKC Holdings Limited (the "Company")
(Incorporated in Bermuda with limited liability) if the
Company does not submit a valid resumption proposal by
16th March, 2000 (the "Deadline").

The board of directors of the Company, through Wang Wen Xi,
Director, wishes to announce that the Company has received
the reactivation proposal (the "Proposal") from an
independent third party, and the Company is presently
engaged in negotiation with the independent third party
over the terms of the Proposal.

In view of the limited time before the Deadline, on 16th
March, 2000, the Company made an application to the Stock
Exchange for an extension of the Deadline. In this respect,
on 9th March, 2000, the Stock Exchange has granted a
conditional extension of the Deadline for a period of three
months until 16th June, 2000.

Shareholders should note that the Proposal is preliminary
and may or may not be accepted by the Stock Exchange as a
valid proposal under the Rules Governing the Listing of
Securities ("Listing Rules") on the Stock Exchange and that
the release of this announcement does not imply that the
Proposal will necessarily be implemented and completed. If
the Proposal is not accepted as a valid resumption proposal
under the Listing Rules, the Company will be de-listed on
16th June, 2000. In the interim, trading of the shares of
the Company will remain suspended until further notice.

Shareholders of the Company are reminded that there is no
assurance that the Proposal, which will be subject to a
number of conditions, may be implemented. (Hong Kong Stock
Exchange  16-March-2000)

PALIBURG HOLDINGS: Creditor pact obviates HQ-tender sale
--------------------------------------------------------
Debt-laden developer Paliburg Holdings has withdrawn the
tender for the sale of its headquarters in Causeway Bay
after securing a financial arrangement with creditors.

The tender for Paliburg Plaza was scheduled to close for
bidding yesterday.  Analysts said Paliburg's settlement
with banks for a new financial arrangement might be an
indication the company's financial position had improved.
Six months ago, the company said its debts amounted to $5
billion.

Last month, the company said it was negotiating with
creditors to extend a standstill arrangement that expired
on September 30.  Paliburg yesterday declined to say
whether it had renewed the standstill agreement.
Century City International Holdings, which holds a 74 per
cent stake in Paliburg, won creditors' approval last month
to extend the informal standstill agreement to the end of
next month.  A standstill agreement allows debtors to defer
paying interest installments.

Paliburg Plaza includes a shopping arcade and office floors
totalling more than 200,000 square feet with more than 100
car-parking spaces.  Most of the office space is leased
while the top floors are occupied by Paliburg and its
affiliates, including Century City and its subsidiary Regal
Hotels International Holdings. The three companies had
planned to lease back the floors if the property was sold.
(South China Morning Post  16-March-2000)


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

PT DHARMALA SAKTI SEJAHTERA: Reports debt-payment delay
-------------------------------------------------------
PT Dharmala Sakti Sejahtera Tbk through letter No. DSST
10/080300/PLN dated 08 March 2000 informs that the Judge of
the Business Court of Central Jakarta dated 8 March 2000,
had approved petition of PT Dharmala Sakti Sejahtera Tbk

DSS ) to postpone the debt payment ( PKPU ) of bankruptcy
suit which was submitted by PT Hanil Bakrie Finance
(PT.HBF ). PT Dharmala Sakti Sejahtera Tbk gives "Press
Release" of PT Dharmala Sakti Sejahtera Tbk dated 8 March
2000 as per attached. (Jakarta Stock Exchange  14-March-
2000)

PT TEXMACO: Gov't says it must continue operating
-------------------------------------------------
Indonesia's President Abdurrachman Wahid said that PT
Texmaco, saddled with large non performing credits and
under investigation for misuse of emergency funds, must
continue operations for the sake of the country's export
earnings, but that legal processes against its management
must not be hampered.

If investigations indicated that the management had broken
the law, any individuals involved must go to court, Wahid
told reporters.  He said that the Attorney General Marzuki
Darusman had taken a long time in Texmaco investigation to
collect evidence against the management, accused of
securing emergency liquidity credits from state-owned PT
Bank Negara Indonesia (BNI) through illegal procedure.

BNI officially transferred its Rp14.9 trillion non
performing credits in Texmaco to the Indonesian Bank
Restructuring Agency yesterday.  (Asia Pulse  14-March-
2000)


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

DDI CORP.: To book 12.9B Yen extra loss on Iridium closure
----------------------------------------------------------
DDI Corp said it will book an extraordinary loss of 12.9
billion yen on the closure of its Nippon Iridium Corp.

The company said its latest earnings revision, announced
earlier in the month, already includes the extra loss.
Earlier, DDI noted a loss of its year to March pretax
earnings of 18 bln yen, from a profit of 17 bln, with net
earnings down 15 bln yen from a profit of 21 bln.

At the time of the revision, DDI said it would make an
extraordinary loss of 21.8 bln yen on the closure of Nippon
Iridium and costs related to the closure of its analogue
mobile phone service. (AFP-Extel News Limited  16-March-
2000)

HEISEI POLYMER CO.: Expects 466M Yen net loss
---------------------------------------------
Heisei Polymer Co. (5193) said on Wednesday it expects to
post a net loss of 466 million yen for the fiscal year
ending March 31, worse than its earlier forecast of a 70
million yen loss.

Heisei Polymer plans to record an extraordinary expense of
494 million yen to write off its entire unfunded
retirement-payout liabilities, so its net loss will be
wider than previously expected. But the company also
intends to maintain its 3 yen annual dividend.

Sales are expected to shrink 3% on the year to 13.6 billion
yen amid a decline in both sales volume and unit prices.
Pretax profit is projected to fall 47% to 32 million yen,
compared with the earlier forecast of 80 million yen.
(Nikkei  16-March-2000)

KUBOTA CORP.: To close bathroom assembly plant
----------------------------------------------
Kubota Corp. (6326) at the end of September plans to close
its plant in Hyogo Prefecture that assembles bathrooms for
single houses, and to withdraw from that business by the
end of fiscal 2000.

The business has been posting losses of 400-500 million yen
a year for the past several years due to the slack housing
market, and Kubota could not devise a successful plan to
make it profitable again.  The company will continue to
make bathtubs at its Shiga Prefecture plant.

The Hyogo prefecture plant will be the second factory
Kubota has decided to close this year, after the Tokai
plant in Aichi Prefecture, which made molds.  When Kubota
entered the bathroom manufacturing sector in 1983, it
mainly made high-quality tile wall products. Overall sales
in the sector peaked at 8 billion yen in fiscal 1996 and
slumped to 4.7 billion yen in fiscal 1998.  (Nikkei  15-
March-2000)

MITSUBISHI RAYON CO.: US anti-trust charges threaten harm
TOHO RAYON CO.: US anti-trust charges threaten harm
TORAY INDUSTRIES INC.: US anti-trust charges threaten harm
----------------------------------------------------------
Officials at three carbon fiber manufacturing companies
that were searched Wednesday by the Tokyo District Public
Prosecutors Office said they were baffled by U.S.
authorities' allegations that their companies broke U.S.
antitrust laws.

A spokesperson for one of the companies, Toray Industries
Inc. (3402), said Toray believes the "accusations are
false."  Toho Rayon Co. (3403) declined to comment on the
search, while a Mitsubishi Rayon Co. (3404) spokesperson
admitted that the company's offices were searched but did
not comment on the details of the investigation.

The three firms' earnings have been declining since last
year. Compensation and damage payments could be a further
burden if U.S. authorities conclude that the companies
indeed acted in violation of U.S. antitrust laws.

U.S. judicial authorities allege that Toray, Mitsubishi
Rayon and Toho Rayon formed illegal price-fixing cartels
for sales of carbon fiber in the U.S. The authorities have
been investigating the case since January 1999 and have
searched the local subsidiaries of the three firms. Earlier
this month, U.S. authorities requested Japanese cooperation
through the Ministry of Foreign Affairs.

The three companies have a combined 76% share of the global
market for carbon fiber. Prices of carbon fiber dropped
from 5,000 yen per kilogram in 1998 to 3,000 to 4,000 yen
per kg in 1999 after the firms increased production.
(Nikkei  16-March-2000)

TOSHIBA CORP.: To book 330B Yen loss for pension gap
----------------------------------------------------
Toshiba Corp. (6502) will record a parent-only
extraordinary loss of 330 billion yen in the current
business year through March to cover most of the 400
billion yen in reserve shortages for its retirement and
pension funds, company sources said. The remaining 70-80
billion gap will be made up in fiscal 2000 by transferring
stock holdings to trust banks handling pension assets for
the firm.

Total extraordinary losses at the parent will amount to 480
billion yen in fiscal 1999, as restructuring expenses and
the cost of settling a computer-related lawsuit in the U.S.
will also be included.  Toshiba expects to suffer a net
loss of 250 billion yen, much larger than the original
projection of 65 billion yen. The annual dividend will
likely come to 3 yen per share, half the 6 yen payout of
fiscal 1998.

Though the move to cover underfunding will have a major
impact on parent earnings, group results will not be
undermined because Toshiba consolidated statements have
reflected the underfunding for some time, in compliance
with U.S. accounting standards.

On a group basis, Toshiba expects a net loss of 30 billion
yen for fiscal 1999, compared to its initial projection of
ending 50 billion yen in the red. Semiconductor-related
operations have shown considerable improvement over the
course of the year. Operating profit will soar 230% to 100
billion yen.

The semiconductor-related division recorded a consolidated
operating loss of 60 billion yen in the first six months of
the year but expects profit of 30-40 billion yen for the
second half. (Nikkei  16-March-2000)

TSUTSUNAKA PLASTIC INDUS.: Braces for group net loss
----------------------------------------------------
Tsutsunaka Plastic Industry Co. (4225) said Wednesday that
it expects to report a group net loss of 1.65 billion yen
for the fiscal year ending March 31, in stark contrast to
its earlier prediction of a net profit of 200 million yen.

In April, the company will dissolve a plastic processing
affiliate located in Ibaraki Prefecture, and as a result
Tsutsunaka Plastic will record an extraordinary loss of 1.3
billion yen.

Tsutsunaka Plastic expects to show a consolidated pretax
profit of 650 million yen, which is 29% greater than a year
ago, but 400 million yen short of its earlier projection.
The difference is partly attributable to higher costs for
materials. (Nikkei  16-March-2000)


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

DAEWOO GROUP: SGIC to begin Daewoo bond guarantee payoff
--------------------------------------------------------
The Korea Deposit Insurance Corp. (KDIC) said Tuesday that
it would inject W700 billion Wednesday into Seoul Guarantee
Insurance Co. (SGIC) so it can pay off the principal on
SGIC-guaranteed bonds issued by Daewoo subsidiaries.

SGIC announced Tuesday that starting from March 25, it
would pay out the principal of Daewoo-issued bonds to
financial institutions and other firms that had purchased
such bonds.  KDIC noted that in return for the capital
injection, it would receive preferred stocks of SGIC, which
would be repurchased in five years by SGIC with operating
profits and then canceled out.

The government had earlier announced that it would inject a
total of W6 trillion in public funds into SGIC-broken down
into W3.4 trillion this year and W2.6 trillion next year-so
that guarantor could fulfil its obligations on guarantees
it had made for Daewoo-issued bonds. (Digital Chosun  16-
March-2000)

DAEWOO MOTOR: General Motors looking for Korean partner
-------------------------------------------------------
General Motors Corp., changing its takeover strategy for
Daewoo Motor Co., is now in search of a Korean partner to
deflect the increasingly negative local feeling against
foreign control of the carmaker.

Allan G. Perriton, a top GM Asia-Pacific executive, said
yesterday GM is prepared to form a strategic alliance with
a Korean company to position itself better in the race for
the Daewoo unit.

"There have been no alliance discussions so far. But a tie-
up with Korean firms is under consideration," said Perriton
in a meeting with reporters. He said that the doors are
open to all Korean firms, and that the major considerations
for an alliance will be human resources, capital and
technology.

Last Friday, GM Korea President David Jerome also said the
American automaker is open to all possibilities as far as
an alliance with Korean firms is concerned.  GM's change in
strategy seems aimed at gaining a firmer footing through
partnerships with local firms, as nearly 90 percent of
respondents to a recent poll were found to be opposed to
foreign takeover of Daewoo Motor.

According to the Seoul-based Korea Research Center's survey
of 503 adults, 56.4 percent said they favored the sale of
the Daewoo carmaker to a Korean-foreign, or purely
domestic, consortium.

"An alliance with Hyundai may trigger controversy over
monopoly issues, while the Samsung Group is engaged in
talks with Renault," said Perriton on the possibilities of
a tie-up with the two Korean giants.

Asked about the Korea Federation of Small and Medium
Business-led consortium, the GM executive said the
consortium's financial and technological capabilities are
questionable.  Perriton also noted that in the wake of an
equity tie-up between Fiat and GM, the two automakers may
launch a joint bid for Daewoo. Fiat is one of the five
bidders for Daewoo, along with Ford Motor, DaimlerChrysler
and Hyundai Motor.

He said that about 70 GM staff members are now
participating in due diligence of Daewoo Motor and plan to
tour the automaker's local and overseas plants shortly.
Perriton refused to reveal GM's price terms, but GM Korea
President David Jerome said last week that GM is not
willing to propose a higher price than rival Ford, which is
reported to have offered up to $7 billion.

Adding further fuel to the already controversial takeover
process, Jerome said GM is not interested in taking over
Daewoo's commercial vehicle operations. (The Korea Herald
16-March-2000)

HYUNDAI SECURITIES: Speculation over its reshuffling
----------------------------------------------------
Speculation is mounting concerning the background to the
sudden reshuffle of Hyundai Securities' top management.

The Hyundai Group said Tuesday night that Hyundai
Securities Chairman Lee Ik-chi was transferred to the
chairman's post of affiliated Korea Industrial Development
Co., a construction unit, while Hyundai Capital Vice
President Roh Jong-ik was being promoted to fill the
position vacated at Hyundai Securities by Lee.

Lee's sudden replacement drew particularly strong attention
as he is one of the few active professional managers
belonging to the innermost circles of Hyundai Group founder
and honorary chairman Chung Ju-yung.  Some industry
analysts said Lee's abrupt departure from the securities
firm was part of the group's efforts to prop up sagging
stock prices.

"Despite Hyundai Securities' significant weight in group
management, Lee has failed to play the chairman's role
since his arrest last year on charges of stock-market
manipulation," said a group spokesman, explaining the
reasons behind the sudden reshuffle. While Lee's case has
yet to be heard in court, he was suspended from office for
three months last December in connection with unlawful
assistance to affiliated companies.

"Amid the under valuations of Hyundai company stocks, the
managerial vacuum at the brokerage unit could not be
allowed to continue," he said, adding that even founder
Chung issued special instructions on the stock market
measures.

Other analysts raised the possibility of a feud surrounding
control of the highly coveted financial businesses in the
run-up to the group's split into five independent small
groups, which also include auto, heavy industry,
construction and electronics, by 2003.

Meanwhile, new Hyundai Securities CEO Roh is known as a
financial expert who has long been involved in the group's
restructuring efforts. Roh, 47, was appointed to the post
of Hyundai Capital vice president a month ago, after
heading the group's Corporate Restructuring Committee.

The largest shareholding, 16.7 percent, in Hyundai
Securities is owned by Hyundai Merchant Marine, in which
Hyundai Group Chairman Chung Mong-hun holds a 13.4 percent
stake.  Hyundai founder Chung's eldest son, Mong-koo, has
taken control of the group's auto businesses, while Mong-
hun is in charge of construction and electronics
affiliates. Another son, Mong-jun, assumed control of the
heavy industry companies, but the financial and securities
businesses have been left "ownerless" so far. (The Korea
Herald  16-March-2000)

SAMSUNG MOTOR: Suppliers ask creditors to deal with Renault
-----------------------------------------------------------
Suppliers of Samsung Motors Inc said they want the
company's creditors to strike a takeover deal with Renault
SA as soon as possible to avert bankruptcies in some of
their firms.

"Should the negotiations with Renault break down, Samsung's
suppliers would go bankrupt and the whole economy of Pusan
City would be seriously damaged," Kim Kwang-Hong, head of
an association of Samsung suppliers, said. "We will wait
until Friday and then hold massive rallies to call for an
early settlement of the negotiations," he was quoted as
saying by Yonhap News Agency in Pusan.

Renault earlier proposed to take over Samsung Motors for
450 mln usd, which was rejected by creditors. Kim was
quoted as saying that the gap between the two sides on the
selling price of the bankrupt carmaker remains large even
after creditors supposedly reduced their asking price from
the equivalent of 1 bln usd to about 776 mln.

"The creditors should not try to recover interest payments
when they sell an insolvent company," he said.  (AFX News
Limited  16-March-2000)


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

FABER GROUP BHD: Creditors approve debt rehab
PARK MAY BHD: Creditors approve debt rehab
---------------------------------------------
Creditors of Faber Group Bhd and Park May Bhd had given the
greenlight to the companies' respective debt restructuring
proposals, said managing director of Renong Bhd, Ahmad
Pardas Senin.

The proposals are now awaiting the Securities Commission's
approval, he told reporters after a press conference to
announce the proposed sales of shares of Commerce Asset-
Holding Bhd (CAHB) and the listing of Projek Lebuhraya
Utara-Selatan (PLUS) Monday.

Both the Renong units, Faber and Park May, had sought the
assistance of the Corporate Debt Restructuring Commitee
(CDRC) for their debt restructuring proposals. Parkmay's
debt restructuring involved debts of RM146 million (US$
1RM3.80) as at Dec 30, 1999.

Faber's debt restructuring scheme involved three parts. The
first is the proposed RM1.23-billion nominal value of five-
year Zero Coupon Redeemable Convertible Secured Bonds to
secured bank creditors of the company.  The second is the
issue of up to RM330.0 million nominal value five-year
Zero percent irreedemable convertible unsecured loan stocks
to unsecured bank creditors and other unsecured creditors
of Faber and its wholly-owned subsidiaries, Faber Hotel
Holdings Sdn Bhd and Subang Jaya Hotel Development Sdn
Bhd.

The final part is a 50-percent capital reduction of
ordinary share capital.  On the proposed integration of the
transport industry in the Klang Valley, Ahmad Pardas said
that the government is now looking into it and that there
could be a decision in the next few months.

Last December, Renong's executive chairman Halim Saad
proposed merging all transport companies in the Klang
Valley, around here, for better efficiency and
profitability.  Ahmad Pardas believes that Projek Usahasama
Transit Ringan Sdn Bhd (Putra), a light rail system
operator, which is 100 percent owned by Renong, is not the
only company which is facing difficulty.  News reports said
that Putra has debts of more than RM2 billion.  (Asia Pulse
15-March-2000)


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

CLOB INT'L: Brokers are sweating it to meet Clob deadline
---------------------------------------------------------
With more than half of the 172,000 Clob securities
investors yet to file their acceptances to migrate their
shares to the Malaysian market, and just three working days
to set up nominee accounts in Malaysia, broking houses fear
they may not be able to process all the applications before
the March 22 deadline.

"If an investor does not have a Malaysian Central
Depository (MCD) account, it is going to take anywhere
between two and four days to set up the account in
Malaysia," said the executive director of a local broking
house.

And some investors with huge Clob positions are apparently
baulking at doling out the fee payable to Effective Capital
Bhd for the transfer, which is 1.5 per cent based on the
Feb 15 prices of the shares on the Kuala Lumpur bourse.
Brokers said that some of their clients had to cough up as
much as $100,000 in transfer fees.

"Some of these investors are looking for financing for the
fee, while others just don't want to draw down their
savings until the deadline draws closer," said a broker.

Meanwhile, brokers told BT that some of their clients
needed time to free up Malaysian Clob shares held by banks
which had provided margin financing against these shares
two years ago. But bank sources could not be contacted for
comment.

Brokers said that although brokerages had liquidated their
Clob margin financing arrangements in the months following
Malaysia's imposition of capital controls in September
1998, some banks were still holding these shares as
collateral against the borrowings.

Although Effective Capital has a March 31 deadline for
accepting the documentation from the Singapore Central
Depository (CDP), the CDP itself has its deadline four days
earlier at March 27 in order to compile and process the
paperwork. Meanwhile, brokers have set their deadlines even
earlier, at March 22, in order to give themselves time to
collate and check documentations before handing them over
to CDP.

But some firms are declining to handle or process
documentation for investors who are not in-house clients,
while others brought forward their deadlines for clients to
the end of this week. Brokers at Lum Chang Securities, for
example, stopped accepting any more documents from clients
after yesterday, fearing there would not be enough time to
process the paperwork if they did.

Brokers told BT that although the Form of Acceptance and
Authorisation FAA document which Clob shareholders have to
submit to CDP was simple, the accompanying Irrevocable
Request and Authority (IRA) was a more complicated document
which would take more time to complete, especially for
investors who do not have MCD accounts.

For these investors, Singapore broking houses have to
contact their Malaysian counterparts or Authorised
Depository Agents, who then have to establish individual
sub-accounts under their nominee accounts with the MCD.
This process would take two working days.

And once the nominee account has been set up, the Singapore
brokers have to courier or physically take the Clob
shareholders' IRA forms to Malaysia to have them verified
and signed. "Section 1 of the form can only be verified and
signed by a senior officer of the Malaysian broking house,"
said the head of a broking firm here.

"Then comes Section 2, where you direct Effective Capital
to migrate the shares. This has to be signed under seal by
the director or head of the Malaysian broking firm. This
means you have a limited number of people who can do this."

And limited time. Having got the signatures, the documents
have to be physically brought back to Singapore where they
have to be submitted to the CDP by March 27.

Brokers point out that although Singapore brokerages are
open throughout the Hari Raya Haji holiday and the weekend,
their Malaysian counterparts will only be open for three
working days between today and the March 22 deadline. They
added that it would be impossible to get the acceptances
processed if Clob shareholders came to them just days
before the March 22 deadline.  CDP yesterday reiterated
that it was sticking with its March 27 deadline.

In another development, the Securities Investors
Association (Singapore) yesterday called on Effective
Capital to collect only 50 per cent of the 1.5 per cent fee
upon migration and leave the balance till the full
staggered release has taken place. This will give
confidence to Clob investors choosing Effective's scheme
that the staggered release will indeed take place, SIAS
said.

Meanwhile, the Official Assignee and Public Trustee has set
up a help desk to assist beneficiaries of small estates and
bankrupts who wish to accept Effective's offer. As the
Official Assignee and Public Trustee has arranged funding
for payment of the 1.5 per cent transfer fee, it is not
necessary for persons who obtain his assistance to make
payment at the time of acceptance of Effective's proposal.
The fee will be deducted from the sale proceeds of the Clob
securities. (Singapore Business Times  16-March-2000)

IPC CORP: Creditors pass debt scheme
------------------------------------
IPC Corp said yesterday its supplemental scheme of
arrangement for a debt restructuring plan had been approved
by unsecured creditors.

Its statement said the scheme was intended for a debt
revamp presented by Infomatec AG to the company announced
on Jan 13.  German-based Infomatec and other investors plan
to inject US$20 million (S$34 million) into IPC. The
computer firm, with debts of $281 million, formed an
alliance with Infomatec last June to restructure its
operations and fend off creditors.

Under the proposal, IPC's creditors would be paid 20
Singapore cents or 20 per cent in cash for every $1 owed.
The remaining 80 per cent owed would be paid by the issue
of new IPC shares at 40 Singapore cents each.  IPC shares
resumed trade yesterday after a suspension and fell 3 cents
to 31.5 cents. (Singapore Business times  16-March-2000)


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

PTT PETROCHEMICAL CO.: Reports its dissolution to SET
-----------------------------------------------------
PTT Petrochemical Co., Ltd., through Viroj Mavichak,
President, reports to the Stock Exchange of Thailand on its
dissolution.

National Petrochemical Public Company Limited (NPC) has
established PTT Petrochemical Co., Ltd. (PTT-PC) in
September 1995 as one of its subsidiaries, the current
registered capital of which totaled 260 million baht (its
initial registered capital was at the amount of 200 million
baht). At first, the subsidiary was wholly owned by NPC and
it was then expected that some other parties would take
part later on by dealing in joint ventures with NPC.

The subsidiary was set up to carry out the NPC-3 project
which included fully-integrated petroleum and petrochemical
industry, with a complete range of petrochemical by-
products, and utilities services.  Nevertheless, due to the
continual economic crisis both in the country and the Asia
Pacific region since 1997, including the fluctuation of
many currencies and the economic recession, PTT-PC's
investment projects came to a halt. Moreover, PTT-PC has
not been able to begin its business or to perform in
accordance with its objectives.

Given to this, PTT-PC's shareholders resolved in the
Extraordinary Meeting No. 1/2000 on March 15, 2000, to
approve the dissolution of the company. At present, PTT-PC
is during the process of liquidation.  (Stock Exchange of
Thailand  16-March-2000)

THAI AIRWAYS INT'L: Gov't nod to 1st step to privatization
----------------------------------------------------------
The cabinet approved Thai Airways International's plan to
sell a 23% stake to the public, employees and a strategic
partner.

The state carrier will sell 300 million new shares and 100
million shares currently held by the finance ministry, in
an initial step toward full privatization, the Cabinet
said.  After the sale, the finance ministry will hold 70%
in the airline, down from 93% currently.

The funds will will go to reducing the airline's large debt
burden. The airline's registered capital will total 17
billion baht ($449.3 million) after the new share issue.
The airline plans to sell an 8% stake through a public
offering within three months, with a further 5% holding
reserved for the airline's employees.

Thai Airways will also sell a 10% stake to a strategic
partner, but hasn't yet given details.  Thai Airways shares
rose 4.3%, or 1.5 baht, to 36.75 baht in Tuesday trading.
(The Asian Wall Street Journal  15-March-2000)

THAI OLEFIN CORP.: Reaches agreement on debt restructure
--------------------------------------------------------
Thai Olefin Corporation (TOC) yesterday reached an
agreement with its creditors to restructure the debt of
$330 million, or about 12.54 billion baht,and the official
agreement signing ceremony is set on May 8, 2000, according
to TOC Chairman , Gen.Yuthasak Sasiprapa.

Yuthasak said TOC earlier sent the proposal for debt
restructuring plan to its creditors,which gained the
approval from over 94 percent of its creditors on March 15.
Among the largest creditors of TOC are Bangkok Bank Pcl.
(BBL),and Chase Manhatton IBJ , having endorsed the debt
restructuring plan.

Yuthasak said the debt repayment period will be extended
from five years to seven years.  The Petroleum Authority of
Thailand (PTT),which is the largest shareholder of TOC with
49 percent stake will provide a contingent support of $50
million, in addition to another $50 million under PTT
credit for raw material purchase.

For the additional financial assistance from PTT, the
matter will have to be approved by the Cabinet because PTT
is a state enterprise.  Yuthasak further disclosed that
after the debt restructuring agreement is signed, TOC is
planning to increase its plant production capacity from the
current 380 billion tons per year to 600 - 700 billion tons
per year.

The increased production capacity is aimed at making TOC a
world-scaled olefin producer. The whole capacity expansion
will have to be finished within the year 2004, by which the
petrochemical industry is on the upward trend.  The TOC
chairman said olefin products,such as ethylene, is in the
growing demand in the world market,and this trend helped
jack up the total sale in February for the company's profit
of 100 million baht.

TOC is also planning to shift its production fuel from
naptha to natural gas because the price of naptha has gone
up drastically in accordance with the global crude oil
price.  Soon, the olefin plant will use natural gas as a
sole fuel for the production process. (Business Day  16-
March-2000)

THAI PETROCHEM.INDUS.: Court decision favors creditors
------------------------------------------------------
A Thai Petrochemical Industry lawyer said the company will
offer its rehabilitation plan to the receivers, and if its
plan is accepted, then TPI's executives could stay on. But
if its plan is not accepted, the executives would have to
quit.

A lawyer for the creditors said a meeting of all the
creditors would be called to take a head count to determine
how many of them were supporting the position of the
creditors.

"There will be a lot of lobbying by both sides to win the
support of the creditors," he said.

The process of deciding whose plan will be accepted will
take about seven months, the creditors' lawyer said.
Analysts said it would take at least a year.

Looking ahead at the future of the company, Mr Moss said:
"Now that the creditors are in charge they may want to
write off some debt, which they did not want to do as long
as Mr Prachai was in charge."

But first, the creditors will want to bring in a strategic
partner to take over the company, Mr Moss said.

The ruling sends a message to Thailand's many defaulters,
which have been holding creditors at bay through protracted
negotiations or simply refusing to discuss debt
restructuring, that they can't avoid their obligations.

"It would have been nasty if Thai Petrochemical could have
won," said Narlin Opamuratawongse, director and head of
Thailand investment banking for Salomon Smith Barney.
"Other companies would have followed by not paying their
debts."

The court's decision is a victory for creditors' rights in
a country that didn't even have a separate bankruptcy court
a year ago, when one in two loans nationwide was bad.
Creditors include Bangkok Bank, International Finance
Corp., Bank of America, Citigroup and US Export Import
Bank.

Still, the court's decision leaves the possibility open for
compromise, as creditors could eventually decide on
retaining TPI's current management, which in 1997 declared
a moratorium on more than $3 billion of debt.  The company
will continue under current management while creditors
select a manager to come up with a rehabilitation plan,
said Judge Pornchai Asvawattanaporn.

The selection of a planner, automatic if made by creditors
holding at least two-thirds of the debt, will take up to
two months. Writing a plan could take another five months.
A creditors committee earlier recommended Bangkok Bank's
adviser, Ferrier Hodgson, as planner. Thai Petrochem has
recommended its Chief Executive, Prachai Leophalratana.

"We have to respect the court verdict, but the company will
fight to have TPI as the planner," said Boriruk Jivaviroj,
a lawyer for TPI.

As well as marking a stage in the development of court
protection for creditors, the move will boost investor
confidence in the country, which saw its financial system
almost collapse after the Asian currency crisis of 1997.

"It signifies that Thailand is now serious about bringing
in corporate governance," said Simon Andrew, an analyst at
Indosuez W.I. Carr Securities in Singapore. "Investors will
have much more confidence in putting money into the
country."

Thailand strengthened its bankruptcy and foreclosure codes
last year, under the terms of a bailout program led by the
International Monetary Fund (IMF). Some senators, among
them Prachal, tried in vain to vote down the legislation.
Ferrier, through its Effective Planners unit, said it would
bring in about 50 executives and engineers from across
Asia-Pacific on temporary contracts to run Thai Petrochem
if named planner. Ferrier's priority would be to generate
more cash from regular operations.  (Business Day,
Singapore Business Times  16-March-2000)

THAI PETROCHEM.INDUS.: Ct.ruling ineffective on stock slide
-----------------------------------------------------------
The Central Bankruptcy Court's ruling on the historic Thai
Petrochemical Industry Plc case failed to shore up the
stock market yesterday, as investors took it as a
compromise or face-saving measure for both creditors and
the debtor.

Yet a securities analyst at Nava Vickers Ballas Securities
(Thailand) Co Ltd attributed the market's rapid decrease by
14.17 points, or 3.5 per cent, as a result of programme
selling by Japanese institutional investors, who were keen
to close their books by the end of this month.

Selling pressure was particularly strong in the morning
session before the Central Bankruptcy Court's ruling on
TPI, which the markets expected to be in favour of creditor
banks.  When the ruling was announced that the company was
insolvent, but the decision about the company's planner
would be deferred until next month, the SET index continued
to fall.

The result was big losses at the end of a day of drama for
the Thai judicial system.  The banking sector was down
nearly 6 per cent on retail selling. The end result was
worst felt by Bangkok Bank (BBL), which fell Bt3.75 to
close at Bt36.50.

Bangkok Bank is a major creditor of TPI, which is saddled
with US$3.5 billion (Bt132.75 billion) of debt.  Among
other losers were Thai Farmers Bank, down Bt1.50 to Bt33.75
and Siam Commercial Bank, down Bt1.25 to Bt30.50. Foreign
investors also joined yesterday's selling spree, evidenced
by a Bt6 decrease in BBL's share price on the foreign board
to close the day at Bt62.

The Nava Vickers Ballas analysts said the sharp fall in the
stock market was largely a result of Japanese hedge funds
looking to close their balance sheets by the end of March.

"The result failed to impress the market, as the ruling
seems to be a relative compromise, although the court has
ruled in favour of the creditors," said the analyst.
"Additionally, the rift between Finance Minister Tarrin
Nimmanahaeminda and Bank of Thailand governor MR Chatu
Mongkol Sonakul aggravated the market, as investors
questioned whether the head of the central bank would
resign."

Veerachai Krongsamsri, senior analyst at UOB Securities
(Thailand) Co Ltd, said the court ruling was not "once-and-
for-all" and prolonged TPI's debt restructuring, since it
would take more than three months to complete the process.

"Although the creditors seem to be winners, they win with
conditions. This allows TPI a chance to work out a deal to
become planner of the rehabilitation plan. But this deal,
however, will need two-thirds support from creditors,
otherwise they will pick their own planner," he said.

The market's fall yesterday was attributed to investors'
eagerness to lock in profit from some banking stocks, which
rose sharply in a past few days on speculation the
creditors would be the ultimate winners in TPI's case, he
said.  The analyst believed the downside trend in the
market would be short-lived after the index fell closed at
386.20 points. The next resistance level was at 375, he
said.

"The panic selling was triggered when local investors saw
the court's decision to give management control to the
current management team as a bad move, as Thai
Petrochemical may try to find a way out of the
restructuring process," said Tom Phaibool, head of research
at Tisco Securities.

Tom said it would take time for investors to realise the
court verdict provided the best solution for both the
company and its creditors, and that the bankruptcy court
would not allow Thai Petrochemical to flee the
restructuring process.  A rebound in bank stocks was likely
in the near future, he said. (The Nation  16-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.
For subscription information, contact Christopher Beard at
301/951-6400.

                 *** End of Transmission ***