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

                           A S I A   P A C I F I C

             Monday, April 3, 2000, Vol. 3, No. 65

                                    Headlines


* A U S T R A L I A *

IAMA : Nufarm eyes greater stake
SIDDONS RAMSET: Prepares for US takeover
TIGER HEDGE FUND : Big stake in Normandy up for grabs


* C H I N A  &  H O N G  K O N G *

CHINA OVERSEAS LAND & INVEST.: Posts annual loss
FANTA WELLEAD GROUP LTD: Facing winding up petition
LUCKY BOND DEVELOPMENT: Facing winding up petition
MATRIX HOLDINGS: Faces exchange action over breaches
NAM FONG INT'L HOLDINGS: Facing winding up petition
NEW WORLD DEVELOPMENT: Posts $1.58B loss
PACIFIC PORTS: Reports narrower annual loss
TOP KEY ENGINEERING LTD: Facing winding up petition
TRADEPOWER (HOLDINGS)LTD: Facing winding up petition


* I N D O N E S I A *

PT ASTRA INT'L: No plans for shake-up, debt prioritized
PT BANK DANAMON : Merger 'won't affect creditors'
PT INDOSTEEL TBK: Given until 31 Aug. to avoid delisting
PT OMETRACO CORP.: IBRA files bankruptcy suit against
PT PUTRA SEJAHTERA PIONEERINDO: 31 Jul. delisting deadline
PT SEKAR LAUT TBK: Given til 30 Sep to avoid delisting


* J A P A N *

HASEKO CORP.: To write off more paper losses on land
KAWASAKI HEAVY INDUS.: Predicts FY99 group net loss
MAZDA MOTOR CORP.: To lay off contract workers,cut output
NAMIHAYA BANK: Bank of Ikeda, Minato Bank look to buy
NISSHO IWAI CORP.: Sees 95B Yen extraordinary loss in FY99
OMRON CORP.: To suffer 11B Yen FY99 net loss
RYOBI LTD.: Unveils plans to restore financial health
SAWAFUJI ELECTRIC CO.: Forecasts 2.2B Yen pension gap
SHOEI CO.: Shareholders reject dividend,director motions


* K O R E A *

DAEWOO GROUP: Foreign creditors agree to debt buyout
DAEWOO MOTORS: Workers strike to protest foreign sale
DAEWOO MOTORS: 22 creditors ordered to be paid
DAEWOO MOTORS: Heading for foreign takeover
KEXIM BANK: To resume the issuance of debt bonds
KOOKMIN BANK: Gets US$150M loan
KOREA DEVELOPMENT BANK: To issue bonds to re-fi debts
SAMSUNG MOTORS: Renault to meet with creditors Monday
SAMSUNG MOTOR: Creditors, Renault may reach accord Monday


* M A L A Y S I A *

NALURI BHD.: To restructure debt;airline stock collateral


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

NATIONAL POWER CORP.: Gets $500M bond float share
UNIWIDE HOLDINGS: SEC grants its 60-day debt suspension


* S I N G A P O R E *

CLOB INT'L: 93% of Clob investors take up EffCapital offer
DBS GROUP : Plans US$500M 10-year debt issue
HONG LEONG ASIA: Posts S$2.4M loss


* T H A I L A N D *

CENTRAL HOTELS & RESORTS: Sells Burma property for $4.5M
SIAM YAMAHA : Bought out by Japan partner
SRITHAI SUPERWEAR: To issue shares, comply rehab plans
THAI OIL CO.: Creditors back debt-revamp plan
THAI PETROCHEM.INDUS.: Seeks approval to pay interest
WONGPAITOON FOOTWEAR GROUP: To raise capital,convert debt


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

IAMA : Nufarm eyes greater stake
--------------------------------
The renamed trans-Tasman chemicals group Nufarm may lift
its stake in struggling rural merchandiser IAMA as talk of
another bout of rationalisation in the sector builds.

A spokesman for Nufarm said yesterday the company had
bought the 6 per cent stake in 1998 because it was "not
going to stand on the sidelines" and would not rule out
raising the stake.  Nufarm, formerly Fernz Corp before
switching its home base from New Zealand to Australia,
bought the IAMA stake in 1998 for $2 a share. The shares
have since slid to $1.24.

Nufarm is seen as being vitally interested in having a
competitive distribution sector because it is worried its
margins could be hurt in a market consolidation. IAMA is
one of at least six distributors Fernz uses, including
Futuris Corporation's Elders and Wesfarmers-Dalgety.

"Distribution in the Australian market is a part of the
business that takes a fair cut (of the company's margin),"
the spokesman said.  "We did not invest in IAMA to make a
profitable investment. In the distribution market generally
we are not going to stand on the sidelines."

Nufarm, which has a crop protection business making a range
of agricultural chemicals, yesterday reported net profit of
$10.66 million for the eight months to January, consistent
with a move to switch its end for year balance date from
May to July. Interim dividend is 6c. The company's shares
have risen from $2.70 last month to $3.37, largely because
the company will join the new ASX200 index when it is
instituted next week.

The company said it was on track for a full-year profit of
$50 million, driven by large seasonal contributions of
businesses in North America and Europe.  In addition to
crop care, the company is also a global supplier of
industrial and specialty chemicals.

"We remain extremely ambitious in terms of our growth
outlook. We believe that as the (chemical) industry
continues to rationalise internationally that opportunities
will come Nufarm's way," the spokesman said. (Sydney
Morning Herald  31-March-2000)

SIDDONS RAMSET: Prepares for US takeover
----------------------------------------
The board of one of Australia's oldest manufacturers,
Siddons Ramset, finally caved in yesterday and recommended
that its shareholders accept an increased takeover offer
from Illinois Tool Works Inc.

The United States-based suitor increased its already
revised offer to approximately $358 million, or $6.63 per
share, including 62 cents in special and interim dividends
already declared by Siddons.  Four months after ITW
announced its bid, Siddons directors declared the final
offer was "fair and reasonable."

The revised offer is conditional on the US group - whose
products include Fastex fasteners and the patented plastic
webbing for six packs - securing 90 per cent of Siddons
Ramset shares by 20 April. ITW had initially offered $5.95
a share in December, valuing the building tools maker and
hardware distributor at approximately $319 million. It then
offered to increase this to $6.30 a share if it gained
acceptances for 50.1 per cent of Siddons stock by 31 March.

The chairman of Siddons, Mr Ron Turner, said the final
offer was a good result for the company's shareholders.
"We strongly encourage Siddons Ramset shareholders to
accept the ITW offer as soon as possible to ensure the
remaining conditions are met and thereby enable
shareholders to receive payment for their shares at the
earliest possible opportunity," Mr Turner said.

Siddons is one of the Australia's best-known manufacturers.
Founded in the depths of the Depression, the company began
producing its famous Sidchrome tools as part of the war
effort in 1942. In October, its long-time chairman, Mr John
Siddons, was ousted by institutions ensuring there was no
longer a Siddons presence in the company the family
founded.

The takeover began to look inevitable this week when a
number of institutions accepted the first revised bid. Few
expected the company to generate profits in the post-GST,
post-Olympics environment that would justify the kind of
share price on offer.

Mr Rob Patterson, the managing director of Argo
Investments, which owns 2.3 per cent of Siddons, said the
company's share price would have been as low as $4 had
there not been a bid.  On Thursday, trading in Siddons
Ramset shares was suspended to allow company and ITW to
discuss the bid. The New York-listed ITW operates in 35
countries and employs 29,000 people. It has operated in
Australia since the 1950s and reported sales of $264
million in the year to November 1999. (The Age  01-April-
2000)

TIGER HEDGE FUND : Big stake in Normandy up for grabs
-----------------------------------------------------
Strong speculation in the US that Mr Julian Robertson's
Tiger hedge fund group could be closed down by the weekend
has thrown open to question the future of its strategic
stake in Normandy Mining, Australia's biggest gold
producer.

Tiger owns 11.4 per cent of Normandy, making it the biggest
shareholder. It took up the stake in October 1997 when it
bought out Normandy's failed suitor, Newcrest Mining, at a
cost of $1.78 a share for a total of $343 million. Those
shares were priced yesterday at 85c, for a total of $170
million, a price fall that reflects the collapse in the
gold price and gold equities.

Analysts said US gold group Homestake, Normandy's partner
in the Super Pit at Kalgoorlie, Australia's biggest
goldmine, was a strong tip to acquire the 11.4 per cent
stake Normandy held by Tiger.  Some also raised the
prospect that Normandy's executive chairman, Mr Robert de
Crespigny, would look to have Normandy buy back the shares
for cancellation.

Mr de Crespigny has already demonstrated his belief that
Normandy is undervalued by topping up his personal holding
at 93c a share in February. He now holds about 3.8 per cent
of the group's ordinary shares.  The uncertainty
surrounding the future of Tiger and its stake in Normandy
was reflected in the heavy trade in Normandy yesterday.

More than 13.9 million shares were traded compared with its
10-day average of 5.7 million shares.  Gold traded a couple
of dollars lower in Asian markets yesterday at $US277.20 an
ounce. (Sydney Morning Herald  31-March-2000)


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

CHINA OVERSEAS LAND & INVEST.: Posts annual loss
------------------------------------------------
China Overseas Land & Investment has reported its second
full-year loss after making HK$1.15B in provisions for
property projects.  The net loss for the year to December
31 was HK$471.82M, down from HK$925.32M a year earlier.
Turnover dropped 34% to HK$3.59B while profit from ordinary
activities before provisions and losses on investments
plunged 69% to HK$342.82M.  Details of the property
provisions were not disclosed.  A HK$44M provision was also
made for an investment in Ryoden Development.  No dividend
was recommended for the year.

FANTA WELLEAD GROUP 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
Tsui King Leung and Chan Mui Yee for the winding up of
Fanta Wellead Group Limited. A notice of legal appearance
must be filed on or before April 18.

LUCKY BOND DEVELOPMENT: Facing winding up petition
--------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for May 3 on the petition of Ng Kam
Sin for the winding up of Lucky Bond Development Limited.
A notice of legal appearance must be filed on or before May
2.

MATRIX HOLDINGS: Faces exchange action over breaches
----------------------------------------------------
Matrix Holdings is set to face action from the stock
exchange for breaching listing rules after it failed to
seek shareholder approval before granting security to its
chairman for a loan.

Chairman James Wong Chak-hung lent Matrix HK$5.4 million to
finance resumption of its operation last December, a year
after its sales and manufacturing operations were suspended
because of financial difficulty.  The loan was secured by a
charge over company assets.  The firm said as the loan was
considered a connected transaction under listing rules, the
absence of shareholders' approval for the security given to
Mr Wong constituted a breach of rules.

"The stock exchange has informed the company that it will
take appropriate action regarding the breach," the company
said.

Matrix also breached listing rules by failing to report
audited financial results for the 12 months to December 31,
1998, and the first half of last year. The firm said this
was caused by a lack of funds to maintain its accounting
function.

Meanwhile, as part of a restructuring agreement, Mental
Resources and Oilpro are to subscribe to 100 million new
Matrix shares for HK$10 million and HK$30 million worth of
convertible loans.  Mental is 87.5 per cent owned by Oilpro
and 12.5 per cent by Mr Wong, and Oilpro owned by Malaysian
businessman Low Hyap Heng.

Creditors will waive HK$127.6 million of the firm's debt
under the restructuring, after which Mental will hold 68.4
per cent of Matrix, while Oilpro and creditors have 24 per
cent.  The restructuring will be subject to the Securities
and Futures Commission's granting Mental a waiver of a
mandatory general offer for shares not owned by the buyers.

Mr Wong and Mr Low have pledged to the stock exchange not
to inject assets into Matrix within 12 months after
completion of the restructuring. Mr Wong will remain as
chairman. (South China Morning Post  01-April-2000)

NAM FONG INT'L HOLDINGS: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for April 12 for the petition of
Lau Yue Sun for the winding up Nam Fong International
Holdings Limited. A notice of legal apperance must be filed
on or before April 11.

NEW WORLD DEVELOPMENT: Posts $1.58B loss
----------------------------------------
New World Development posted its first ever interim loss
for the six months ended December 31 last year - the result
of a $1.58 billion exceptional loss from the spin-off and
listing of New World China Land at below book value.

Loss attributable to shareholders amounted to $907.2
million during the six-month period, compared with an
attributable profit of $633.4 million recorded a year ago.
The net loss was at the high end of analysts' expectations,
which ranged from $600 million to $900 million. Operating
profit during the period actually saw a substantial 67 per
cent rise to $1.11 billion on a mild 4.8 per cent drop in
turnover to $9.14 billion.

Managing director Henry Cheng Kar-shun said: "New World
Development was trounced badly over the past two years. We
haven't really sold any properties, and the group has not
really started to harvest its mainland investments."

During the six-month period, four out of its six core
businesses recorded a drop in profit. Contributions from
property sales plunged to $131.8 million during the period
under review from the previous $503.1 million, while
property rental also slid by 27.4 per cent to $420.1
million.

Infrastructure business dropped 22 per cent to $203.7
million, while construction and engineering dipped 60.1 per
cent to $121.6 million.  Hotel and restaurant operations
was the only core business to achieve a profit growth from
$9.6 million to $59.1 million during the interim period,
while losses from telecommunications business improved to
$181.7 million from the previous $374.7 million.

New World Development also disposed of all of its 0.5 per
cent stake in China Telecom (HK) at around $30 per share
and booked some $500 million profit during the first half.
Looking forward, Mr Cheng said he was optimistic for the
group's second-half result, but refused to say whether New
World Development would be able to turn the red ink into
black for the full year. (Hongkong Standard  31-March-2000)

PACIFIC PORTS: Reports narrower annual loss
-------------------------------------------
Pacific Ports has reported a year-on-year attributable loss
of HK$29.05M to December 31, compared with a HK$237.05M
loss the previous period.  No dividend will be paid, the
same as last year.

TOP KEY ENGINEERING 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
Ching Hing Wah for the winding up of Top Key Engineering
Limited.  A notice of legal apperance must be filed on or
before April 18.

TRADEPOWER (HOLDINGS)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
Flimor Financing Corp. for the winding up of Tradepower
(Holdings) Limited. A notice of legal appearance must be
filed on or before April 18.


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

PT ASTRA INT'L: No plans for shake-up, debt prioritized
-------------------------------------------------------
The new investor in PT Astra International has no immediate
plans for a management shake-up of the country's largest
automotive company but has prioritized debt payment,
Astra's president Theodore Permadi Rachmat said on Friday.

"They said they had no intention to change the management.
They only asked us to work hard and pay our debts," Rachmat
said of the results of his recent meeting with Philip Eng,
the managing director of Singapore's Cycle & Carriage Ltd.
(CCL), the publicly listed firm's new majority shareholder.

CCL, an automotive distributor, led the investor consortium
in buying 39.5 percent of Astra from the Indonesian Bank
Restructuring Agency (IBRA) in bidding last week.  The
winning consortium bought all of IBRA's 1.02 billion Astra
shares at Rp 3,700 per share, providing the agency with
some US$506 million in cash, based on the Rp 7,460 rate
used for the deal.

The consortium includes Batavia Investment Management Ltd.,
Lazard Asia Fund, a unit of Lazard Freres, PT Bhakti
Investama and the Government of Singapore Investment Corp.
CCL is the largest investor with an estimated 23 percent
stake in Astra.  achmat said CCL also did not plan to
implement corporate restructuring of Astra.

"They want us to maintain all the businesses we have now.
They have no grand design for us. What they want is
profitability."

Rachmat said the new investors wanted to place six people
on the board of commissioners, three of whom would replace
commissioners appointed by IBRA, namely Mardi Sutanto, R.
Sumantri and Mahmudin Jasin. AR Ramli will remain the
president commissioner.

He said the appointment of the new commissioners would be
part of the agenda in the company's next shareholders
meeting scheduled for the end of May.  The additional three
commissioners would bring to 12 the number of members of
the board.  Rachmat said the acquisition of Astra by the
new investors would bring financial stability to Astra and
the company could also benefit from the network of new
investors to expand its business.

Rachmat said he was optimistic that Astra would be able to
pay its debts due this year, predicting the company would
exceed last year's net profit of Rp 808 billion ($107
million) this year given the increasing positive trend in
automotive sales.  Rachmat said Astra's total debt was $500
million.

"Our Rp 800 billion net profits for the last year included
earnings from the sale of assets and foreign exchange
earnings. This year, we shall get higher profits without
selling any assets."

Astra projected domestic car sales at 240,000 this year, a
150 percent increase from 94,023 last year, Rachmat said.
He added that Astra products would account for between 50
percent and 55 percent of the sales.  The company also
projected domestic motorbike sales would reach 700,000 this
year, up 43 percent from 487,759 last year

"The rise in car and motorbike sales indicate early signs
of the country's economic recovery," Rachmat said.

Astra is also active in agribusiness, banking and
information technology. IBRA sold its stake in the firm in
order to meet its revenue target of Rp 17 trillion by March
to aid the state budget.  CCL consortium outbid a U.S.
consortium led by Newbridge Capital which included Chase
Asia Equity Partners, PT Nusantara Investment Fund and PT
Saratoga Investama Sedaya, a company partly owned by Edward
Soeryadjaja, the son of Astra's founding William
Soryadjaja. (The Jakarta Post  01-April-2000)

PT BANK DANAMON : Merger 'won't affect creditors'
-------------------------------------------------
The merger of publicly listed Bank Danamon and eight other
smaller banks will not affect their obligations to
creditors.

The banks' joint communication team said on Thursday that
creditors would be protected and their funds in the
respective banks would remain safe despite the merger.

"Danamon and the other eight banks have all issued a
circular to assure their creditors that the merger will not
affect their debt payment," the team said in a statement.

The team said the issuance of the circulars, jointly
prepared with the Indonesian Bank Restructuring Agency
(IBRA), was one of their requirements since the merger
would affect all the banks' clients, be they creditors,
customers, depositors, shareholders or employees.

Eight private banks: publicly listed Bank Duta, Bank Jaya
International, Bank Nusa Nasional (Bank BNN), Bank Pos
Nusantara, Bank Tamara, Bank Tiara Asia, Bank Rama and Bank
Risjad Salim International (Bank RSI) will be merged with
Bank Danamon as part of the government-sponsored bank
recapitalization program.

The team said creditors could raise objections to the
merger with their respective banks before April 24.
The team said the legal aspect of the merger would be
completed in May, but the operations and the banking
networks would be integrated in stages.

The operations of the first three banks -- Bank Jaya, Bank
Pos Nusantara, and Bank Tiara Asia -- would be fully
integrated with that of Danamon in June, while that of Bank
Rama and Bank Tamara in July. Bank Duta and Bank BNN would
be completed in August and Bank RSI in September, the team
said.

However, it did not disclose the bank that would be the
surviving bank in the merger process.  But it said that the
bank created from the merger would have a capital adequacy
ratio (CAR) of at least 8 percent, higher than the 4
percent level required by the central bank.

The project manager of the merger program said the
government had recapitalized Bank Danamon, Bank PDFCI and
Bank Tiara in April and May of last year.

He said the remaining seven banks had a negative level of
CAR, but declined to disclose the figures. The cost of
recapitalizing the seven banks was estimated to have been
between Rp 25 trillion and Rp 30 trillion. The team said
that it had gained support from the employees and union
workers of the merger banks, adding they had started a
rationalization policy and a retirement or lay off program.
(The Jakarta Post  31-March-2000)

PT INDOSTEEL TBK: Given until 31 Aug. to avoid delisting
--------------------------------------------------------
In accordance with hearing between management of PT
Indosteel Tbk, Jakarta Stock Exchange and listing committee
on Wednesday, 22 March 2000, PT Indosteel Tbk was given the
chance until 31 August 2000 to provide evidence why it
should not be delisted.

PT Indosteel Tbk also is obligated to give details of its
corporate plan at the latest in 7 (seven) days to be
announced in stock exchange, consists of but unlimited in
the following matters:

� The business progress and the latest status of debt
restructuring of PT Indosteel Tbk
� The management opinion regarding efforts to gain
undisclaimer opinion from the public accountant

PT Indosteel Tbk is obligated to report the progress of the
company's restructuring process especially related with
demand of the suspension of payment which was submitted to
creditors through the Business Court and should report
every other material fact/event/information which could
influence the going concern of company and price of the
company's share.  (The Jakarta Stock Exchange  30-March-
2000)

PT OMETRACO CORP.: IBRA files bankruptcy suit against
-----------------------------------------------------
The Indonesian Bank Restructuring Agency has filed a
bankruptcy suit against PT Ometraco Corporation for debts
to state banks and institutions taken over or closed by the
government, according to documents from IBRA's lawyer,
Abdul Hakim G. Nusantara and Partners.

The lawyers said Ometraco had failed to repay debts and
interest totalling 5.031 mln usd and 4.521 bln rupiah owed
to banks including PT Bank Exim and PT Bank Dagang Nasional
Indonesia. The suit said Ometraco is also indebted to
American Express Bank Ltd (Singapore), Oversea Chinese
Banking Corporation Ltd, Royal Bank of Canada,
PT Fuji Bank International Indonesia and The Commercial
Bank of Korea (Singapore).  (AFX News Limited  30-March-
2000)

PT PUTRA SEJAHTERA PIONEERINDO: 31 Jul. delisting deadline
----------------------------------------------------------
In accordance with hearing between management of PT Putra
Sejahtera Pioneerindo Tbk, Jakarta Stock Exchange and
listing committee on Thursday, 23 March 2000, PT Putra
Sejahtera Pioneerindo Tbk was given the chance until 31
July 2000 to provide evidence why it should not be
delisted.

PT Putra Sejahtera Pioneerindo Tbk obligated to give
corporate plan at the latest in 7 (seven) days to be
announced in stock exchange, consists of but unlimited in
the following matters:

� The business progress and the latest status of debt
restructuring of PT Putra Sejahtera Pioneerindo Tbk
� The management opinion regarding efforts to gain
unndisclaimer opinion from the public accountant.

PT Putra Sejahtera Pioneerindo Tbk is also obligated to
report  the progress of the company's restructuring process
especially related with demand of the suspension of payment
which was submitted to creditors through the Business Court
and should report every other material
fact/event/information which could influence the going
concern of company and price of the company's share.  (The
Jakarta Stock Exchange  30-March-2000)

PT SEKAR LAUT TBK: Given til 30 Sep to avoid delisting
------------------------------------------------------
In accordance with hearing between management of PT Sekar
Laut Tbk, Jakarta Stock Exchange and listing committee on
Wednesday, 22 March 2000, PT Sekar Laut Tbk was given the
chance until 30 September 2000 to provide evidence as to
why it should not be delisted.

PT Sekar Laut Tbk is obligated to give a corporate plan at
the latest in 7 (seven) days to be announced in stock
exchange, consisting of but unlimited in the following
matters:

� The business progress and the latest status of debt
restructuring of PT Sekar Laut Tbk
� The management opinion regarding efforts to gain
undisclaimer opinion from the public accountant.

PT Sekar Laut Tbk also is obligated to report to the JSX
the progress of the company's restructuring process
especially related with demand of the suspension of payment
which was submitted to creditors through the Business Court
and should report every other material fact/event/informa-
tion which could influence the going concern of company and
price of the company's share.   (The Jakarta Stock Exchange
30-March-2000)


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

HASEKO CORP.: To write off more paper losses on land
----------------------------------------------------
Haseko Corp. (1808) has decided to write off in the fiscal
year ending Friday 11-12 billion yen in appraisal losses on
property holdings acquired for resale.

The major condominium builder will reassess properties
whose market prices have fallen at least 50% from their
book values. Properties that were slated to be sold this
fiscal year but have not been unloaded will reportedly make
up the majority of such landholdings.

Under a restructuring plan presented to creditor banks last
May, Haseko was supposed to sell off real estate holdings
with paper losses over about five years, booking an
estimated 60 billion yen in losses from the disposal this
fiscal year.

Haseko has decided to accelerate its original disposal plan
on the advice of its accountants at a time when other
leading general contractors are doing so. It now projects
some 200 billion yen in extraordinary losses this fiscal
year, up from an earlier forecast of 197 billion yen. As a
result, it is uncertain whether the firm will be able to
secure a net profit for this fiscal year. (Nikkei  30-
March-2000)

KAWASAKI HEAVY INDUS.: Predicts FY99 group net loss
---------------------------------------------------
Kawasaki Heavy Industries Ltd. (7012) said Wednesday it
expects a group net loss of 17 billion yen for the year
ending this month, compared with a loss of 6.1 billion yen
in fiscal 1998.

The company initially projected a 9 billion yen loss.
The firm also predicts a pretax loss of 15 billion yen,
against 500 million yen in red ink the previous year.
Profit at divisions handling plant engineering, machinery
and steel structures has deteriorated in the second half
because of repair work at their facilities in Japan and
overseas.

An extraordinary loss of 4 billion yen will be taken on
securities reassessed ahead of the fiscal 2000 introduction
of market-value accounting.  On a parent-only basis,
Kawasaki Heavy will record a pretax loss of 20 billion yen,
compared with profit of 5 billion yen in fiscal 1998.
Revenue will drop 7% to 940 billion yen. The company
expects a net loss of 16 billion yen, against profit of 3.6
billion yen a year earlier.

Overall order value will drop 10% to 860 billion yen. The
shipbuilding division saw orders for three large crude oil
tankers canceled, while those for plant engineering in
Japan and Southeast Asia were sluggish.

Parent-only underfunding of retirement benefit obligations
stands around 130 billion yen, and at 140 billion yen on a
group basis, assuming a discount rate of 3.5%. Kawasaki
Heavy plans to cover the shortfall over the 10 years
starting fiscal 2000, when a new accounting law requiring
firms to disclose retirement benefit obligations comes into
effect. (Nikkei  30-March-2000)

MAZDA MOTOR CORP.: To lay off contract workers,cut output
---------------------------------------------------------
In line with its plans to curtail production, Mazda Motor
Corp. (7261) plans to lay off all of its more than 500
contract workers from its factories in Hiroshima and
Yamaguchi prefectures by July.

European sales remain sluggish for Mazda's 626 sedan and
some other models, and the company plans to cut back to
single shifts on some production lines.  This will mark the
first time in three years and four months that the company
operates with no contract workers.

Its main plant in Hiroshima now employs 455 such workers,
and its Yamaguchi plant has 79. Layoffs will begin in
April.  The automaker will reduce domestic output this year
by 25,000 vehicles from the initially planned 825,000.
(Nikkei  29-March-2000)

NAMIHAYA BANK: Bank of Ikeda, Minato Bank look to buy
-----------------------------------------------------
Bank of Ikeda (8375) and Minato Bank (8543) are discussing
with administrators of failed Namihaya Bank about
purchasing the lender's sound assets, sources said Tuesday.

It has been widely surmised that the Daiwa Bank (8319)
group would be the likely candidate to take over the Osaka-
based second-tier regional bank's assets. Daiwa Bank has
already proposed a plan to buy and transfer almost all of
Namihaya's healthy assets to a new bank slated to be
created in April through a merger of its two affiliates --
Bank of Kinki (8523) and Bank of Osaka (8371).

But there is growing uncertainty over who will obtain the
assets, as Bank of Ikeda and Minato Bank have also emerged
as candidates. Bank of Ikeda, an Osaka-based regional bank,
intends to buy mainly outlets in northern Osaka, while
Minato Bank, a second-tier regional bank based in Hyogo
Prefecture, hopes to acquire outlets in that prefecture.
Namihaya Bank's retail outlets are mostly located in Osaka
and Hyogo prefectures. (Nikkei  29-March-2000)

NISSHO IWAI CORP.: Sees 95B Yen extraordinary loss in FY99
----------------------------------------------------------
Nissho Iwai Corp. (8063) expects to post 95 billion yen in
consolidated extraordinary loss in the year ended Friday as
the struggling trading house intends to write off most of
the loss related to restructuring efforts in fiscal 1999.

Extraordinary profit on sale of shareholdings and other
methods will offset the loss, helping the company to post
group net profit of just above 9 billion yen, compared with
a loss of 98.5 billion yen a year earlier.

The firm forecasts a total of 120-130 billion yen in
restructuring-related losses by March 2002. In order to
return to financial health as early as possible, the firm
decided to reflect most of the losses in the fiscal 1999
financial statement, company sources said.

Of the 95 billion yen loss, some 50 billion yen will come
from consolidating unprofitable businesses. About 20
billion yen will arise from setting aside reserves for
overseas accounts receivable, which are not covered by
trade insurance, with the remaining 25 billion yen from
depreciation of golf club memberships and other assets.

The company expects to secure more than 70 billion yen in
extraordinary profit on sales of about 30% of the shares in
a new firm to be created in April by spinning off its
information industry division. Appraisal profit on
shareholdings in its subsidiary Nissho Electronics Service
Co. (4713) and sales of fixed assets will generate another
25 billion yen in special profit.

Group pretax profit is forecast to rise 40% to 34 billion
yen, despite a 20% decline in sales to 7 trillion yen.
Gross profit is seen sliding 4% to 260 billion yen. But
gross profit margin is expected to gain 0.5 percentage
points to 3.7% as a result of fewer loss-making deals.
(Nikkei  01-April-2000)

OMRON CORP.: To suffer 11B Yen FY99 net loss
--------------------------------------------
Automated control component maker Omron Corp. (6645)
expects an 11 billion yen net loss for the business year
ending this month, compared to 7 billion yen in profit
initially projected, company sources said Wednesday.

Omron has 126 billion yen in retirement obligations,
assuming a discount rate of 3.5%, though assets set aside
to cover these only total about 90 billion yen. An
extraordinary loss will be taken in fiscal 1999 to
eliminate the 36 billion yen shortfall.

The company hopes to improve its financial standing by
dealing with the pension underfunding earlier than planned.
Brisk sales of control equipment thanks to recovery in
domestic capital spending have made that decision possible.
Pretax profit will jump 80% to 14 billion yen, on a 1%
increase in sales to 385 billion yen.

On a group basis, the company will record net profit of 11
billion yen, in line with initial projections. An
extraordinary loss of 5 billion yen will likely be taken
due to losses at affiliates. Strong sales of control and
industrial equipment both at home and abroad will offset
the extraordinary charge. (Nikkei  30-March-2000)

RYOBI LTD.: Unveils plans to restore financial health
-----------------------------------------------------
Ryobi Ltd. (5851) announced Wednesday plans to restore its
financial health, revolving around selling its power tool
operations in North America, reducing payroll and
overhauling the fishing tackle business.

Extraordinary losses will be incurred by sale of the
operations and other measures. The firm projects a parent-
only net loss of 33.6 billion yen in the fiscal year
through March 31. It previously forecast a 400 million yen
net profit.

A machinery manufacturer in Hong Kong will purchase the
U.S. power tool business in the near future. The sale will
incur a loss of 11.6 billion yen.  Ryobi will reduce its
payroll by 2,548 from the fiscal 1998 level to 6,571 by the
end of March 2004.

The company is studying ways to improve earnings at its
fishing tackle operations, including outright sale of the
business. The fishing tackle and power tool operations
posted consolidated net loss totaling around 6.3 billion
yen in fiscal 1998.  The firm will also reduce interest-
bearing liabilities. It expects to post 4 billion yen in
net profit on a parent-only basis and resume dividend
payments in the fiscal year through March 2004. (Nikkei
20-March-2000)

SAWAFUJI ELECTRIC CO.: Forecasts 2.2B Yen pension gap
-----------------------------------------------------
Sawafuji Electric Co. (6901) estimates its unfunded pension
liability will be about 2.2 billion yen as of March 31.

The company plans to eliminate about 500 million yen of the
shortfall by transferring shares that it owns to a trust
established for this purpose next fiscal year. It plans to
write off the remaining 1.7 billion yen in equal amounts
over the next five years.

Under the new accounting rules, the company's estimated
retirement and severance liabilities as of March 31 will be
about 4.2 billion yen. It has set aside about 1.2 billion
yen in retirement reserves and has about 800 million yen in
pension assets. (Nikkei  29-March-2000)

SHOEI CO.: Shareholders reject dividend,director motions
--------------------------------------------------------
Shareholders of Shoei Co. (3003), the nation's first
company to be targeted for a hostile takeover by another
Japanese firm, voted down most of the motions presented
Tuesday by M&A Consulting Inc. at Shoei's regular
shareholders meeting.

Shoei shareholders rejected a motion by MAC to boost the
annual dividend to 20 yen for fiscal 1999, instead voting
for Shoei's proposal to raise the dividend by 1 yen to 8
yen.  A motion to appoint MAC President Yoshiaki Murakami
as an external director at Shoei was also turned down.

Murakami and his firm represented shareholders holding a
total of about 3 million shares, including MAC's, against
the voting rights for 10.43 million shares exercised at the
meeting.

Following its failed takeover bid, MAC now holds a 6.52%
stake in Shoei as its fourth-largest shareholder. Murakami
said after the meeting that he will "give close scrutiny to
Shoei's management as a large shareholder, and exert
influence on management when deemed necessary." (Nikkei
29-March-2000)


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

DAEWOO GROUP: Foreign creditors agree to debt buyout
----------------------------------------------------
The government wrapped up its negotiations with foreign
creditors of the Daewoo Group's four major units on the
buyout of their debts by granting them the right to benefit
from future profits, an official at the Financial
Supervisory Commission (FSC) said yesterday.

"Oh Ho-keun, head of Daewoo's Corporate Restructuring
Committee, agreed with foreign creditors of the four Daewoo
units on the 'out-the-money warrant' in New York,
completing the debt buyout talks," FSC spokesman Kim Young-
jae said.

Under the agreement, foreign creditors of the four units -
Daewoo Corp. Daewoo Heavy Industries, Daewoo Electronics
and Daewoo Motor - will be allowed to share future profits
stemming from a rise in their values.  In January this
year, the government agreed with Daewoo's foreign creditors
to buy their loans to Daewoo units at an average 40 percent
of their market value. (Korea Herald  31-March-2000)

DAEWOO MOTORS: Workers strike to protest foreign sale
-----------------------------------------------------
Thousands of workers at Daewoo Motor Co. went on strike
Friday to protest the sale of their troubled company to a
foreign automaker.

Five carmakers, including General Motors Corp. and Ford
Motor Co. of the United States, are bidding for Daewoo
Motor, South Korea's second-largest carmaker, which
produced 758,500 vehicles in 1999 at its 17 facilities at
home and abroad. Fat SpA of Italy and Hyundai Motor also
have shown interest.

Workers fear that once a foreign investor takes over, they
might face big layoffs. They demanded that the government
buy their company and run it.

"We oppose a selloff to foreigners!" chanted 3,000 Daewoo
Motor workers during a rally in a railway plaza in Pupyong,
west of Seoul.

Earlier, they rallied at the factory and marched 3
kilometers (2 miles) to the plaza, carrying picket signs
and banners. No violence was reported.  Daewoo's Pupyong
factory, which usually produces half of all Daewoo cars
sold in South Korea, was closed. Another major Daewoo
factory was running normally. A smaller bus assembly line
on the south coast stopped for two hours as workers
held a protest.

Daewoo Motor workers said they will stay off the assembly
lines Saturday and Sunday and decide whether to continue
the strike Monday.  Management said it has enough inventory
to make up for the two-day work stoppage. But it feared
that if the strike were prolonged, it would hurt Daewoo's
exports and hundreds of subcontractors.

The government and creditor banks are determined to sell
the ailing carmaker. The Hyundai conglomerate said Friday
it would not assist its car-making arm in its bid to
purchase Daewoo Motor. The Daewoo conglomerate narrowly
escaped bankruptcy when its domestic creditors agreed in
June to delay repayment of dlrs 8.3 billion in debt for six
months and extend dlrs 3.3 billion in new loans.

Daewoo agreed to sell or spin off 13 units. Its 12 other
units, including Daewoo Motor, were placed in a program
that calls for creditors to turn debts into equity or delay
debt payments.  By taking over Daewoo Motor, U.S.
automakers hope to strengthen their presence in Asia.

At the end of June 1999, Daewoo Motor had dlrs 18.3 billion
in total assets and dlrs 13.9 billion in debt. A militant
labor umbrella group threatened to call a week-long
industry-wide strike Thursday unless the government agrees
to talk about taking over Daewoo Motor.  Workers at Hyundai
Motor Co., South Korea's largest carmaker, and another
major carmaker, Kia Motor, will join Daewoo workers in the
bigger strike, said Dan Byong-ho, head of the Confederation
of Korea Trade Unions.  (AP Worldstream  31-March-2000)

DAEWOO MOTORS: 22 creditors ordered to be paid
----------------------------------------------
The Inchon District Court recently ruled in favor of 22
holders of insolvent commercial papers (CP) issued by
Daewoo Motor worth 6.4 billion won for them to receive
payment from Daewoo Motor Sales (KSE: 04550).

The court ordered Daewoo Motor Sales March 17 to pay the
debts, Daewoo creditors said Thursday.  The individual
creditors filed suit for payment as all assets of Daewoo
Motor were tied to payment guarantees.  Despite the ruling,
Daewoo is unable to pay the debts and will organize a
negotiating team to deal with individual and corporate
creditors in a bid to help resolve the case in a package, a
Daewoo Motor source said.  (Asia Pulse  30-March-2000)

DAEWOO MOTORS: Heading for foreign takeover
-------------------------------------------
Daewoo Motor looks certain to succumb to a foreign
takeover, with General Motors and Ford Motor the likely
buyers of the insolvent company. The chances of
South Korean conglomerate Hyundai have been wrecked by a
family power struggle.  (Financial Times [London]  30-
March-2000)

KEXIM BANK: To resume the issuance of debt bonds
------------------------------------------------
The state-owned Export Import Bank of Korea intends to
resume its precrisis practice of tapping the international
debt markets regularly, according to a bank official, but
it has scaled back plans to issue overseas bonds this year
due to better that expected liquidity.

Sung Uk Hong, director of Kexim's Treasury department and
in charge of overseas financing, said that with Korea's
better economic footing and its return to a triple -B
investment-grade rating, the bank plans to issue senior
debt for the first time since 1997.

"From now on, we will probably be in the market, probably
once ot twice every year," he said, adding that Kexim's
current financial status is "very sound".

Kexim is one of korea's three totally government-owned
policy banks and shares the sovereign rating, but it iis
less well known to international investors than sister
Korea Development Bank.

The bank intends to raise $1 billion in senior debt of five
to seven years maturity in the second half of this year.
The fund-raising exercise, which maybe spread across more
than one market, will mark the first time Kexim has tapped
the international debts markets since the start of the
regional crisis.

Kexim's last foray into the overseas market came in March
1997 when it raised $ 650 million in 10-year bonds; just
before that, in February, it issued $ 500 million in five-
year notes. But the bank stayed away from international
markets as the country went through its painful financial
and economic crisis.

Three years later, with Korea's economy back in full
recovery mode, Kexim is prepared to re-enter the debt
markets. In January, it announced plans to raise $ 1.5
billion this year, but with better-than expected liquidity
due to early repayment by domestic borrowers, the bank's
funding requirements have been lower than planned, said Mr.
Hong.

Indeed, a second -half offering may be wll-timed, since
Korea and, therefore the policy banks, expect to get
another ratings upgrade by mid-year, said the treasury
department official. Mr. Hong acknowledged investor demand
for Kexim's sovereign-lenel triple-B paper is strong; Kexim
followed the Korea sovereign higher when it was upgraded in
recent months by both Standard & Poor's Corp. and Moody's
Investors Service. (The Asian-Pacific News  30-March-2000)

KOOKMIN BANK: Gets US$150M loan
-------------------------------
Kookmin Bank officials announced Friday that it had
obtained a syndicated loan of US$150 million from 28
overseas institutions based in Hong Kong and Singapore. The
loan matures in one year and the interest rate is LIBOR
plus up to 1.15%. The bank intends to use the funds to
complete a payment of US$1.07 billion in short term loans
due April 10. (Digital Chosun  31-March-2000)

KOREA DEVELOPMENT BANK: To issue bonds to re-fi debts
-----------------------------------------------------
Korea Development Bank issued euro-denominated bonds worth
500 million euro to European investors, the first bond
issue in Europe since Korea's foreign exchange crisis in
late 1997, the state-run bank said.

Deutsche Bank and Barclays Bank jointly lead-managed the
bond issue, which will mature in five years and carry an
annual coupon rate of 6 percent, a bank official said.

The proceeds from the bond issue will be used in paying off
KDB's high-rate foreign debts and providing loans to
domestic companies to help them finance exports and
imports. (The Korea Herald  01-April-2000)

SAMSUNG MOTORS: Renault to meet with creditors Monday
-----------------------------------------------------
Talks scheduled here today between Renault SA and the
creditor banks of Samsung Motors on the sale of the latter
have been postponed for three days, creditors said.

Ahird round of talks aimed at settling a selling price for
Samsung Motors had been due to begin there Friday.

"Renault notified us, early in the morning, that it hoped
to reopen the talks in Seoul on April 3, three days later
than we planned," Kim Sok-Rin of Hanvit Bank, Samsung
Motors' main creditor, said.

He attributed the delay to Renault's "difficulties with the
timing of the meeting," which had been scheduled for Friday
under a proposal from Samsung's creditors yesterday.
Renault's exclusive negotiator status for the acquisition
of Samsung Motors expires at midnight tonight, but Kim said
it was effectively being extended to allow further talks.
"You could say the deadline is being extended," Kim said.
(AFX News Limited  31-March-2000)

SAMSUNG MOTOR: Creditors, Renault may reach accord Monday
---------------------------------------------------------
Creditors of Samsung Motor and Renault are likely to
finalize their talks on the sale of Samsung Motor at a
meeting Monday.

An official at Hanvit Bank said yesterday they have
narrowed their differences on price and will work on other
details of the sale, including the method of payment. More
time is needed because every creditor must agree on the
terms and conditions for the sale, he said, adding there
will be an official announcement before the April 13
general elections.

Renault is known to have raised its bid from $450 million
to $550 million, while Samsung creditors have shaved their
initial asking price of 675 billion won by up to 10
percent.  The French motor firm proposed to pay $50 million
up front and 10 percent of profits every year over the next
20 years on condition that Samsung Group retains 30 percent
of the motor firm.

Samsung creditors, meanwhile, want Renault to increase its
cash payment. (The Korea Herald  01-April-2000)


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

NALURI BHD.: To restructure debt;airline stock collateral
---------------------------------------------------------
Naluri Bhd. expects to come with a proposal to restructure
all of its one billion ringgit ($263.2 million) debt soon,
a senior management executive said.

The Malaysian aviation company hopes to restructure its
total debt of some one billion ringgit, not 1.28 billion
ringgit as reported in a local daily Thursday, said head of
corporate services Johan Zainuddin Dzulkifli.  Naluri,
together with the central bank's Corporate Debt
Restructuring Committee and the group's creditors, should
come up with a debt-restructuring solution "soon," Mr.
Johan said.

"The restructuring has not been completed," Mr. Johan said,
adding, "Nothing has been finalized yet." But Naluri's
creditors have generally agreed in principle on the debt-
restructuring proposal, he added.  "Ultimately, the
creditors have to agree," Mr. Johan said.

However, he couldn't confirm a Business Times report
Thursday that Naluri will likely sell 8% to 10% of its
stake in Malaysian Airline Bhd., the holding company of
national carrier Malaysia Airlines, at a price range of
5.50 ringgit to six ringgit a share.

KAF Research Sdn. Bhd. said a sale in that price range
would result in a loss because Naluri had paid eight
ringgit a share for Malaysian Airline in 1994. Industry
sources said Naluri is currently in the final stages of
negotiations with two parties, believed to be local.

"We believe the stake will indeed be sold to a local party
to maintain national interest," KAF Research Sdn. Bhd. said
in a report. "Government investment arm Khazanah Nasional
Bhd. could be the suitor, given that it already has an
interest in the airline."

Part of Naluri's debt is in the form of 2% 600 million
ringgit redeemable bank-guaranteed bonds, which will mature
June 12.  Mr. Johan confirmed that Naluri has pledged
Malaysian Airline shares as collateral for the bonds. This
means it would be imperative for Naluri to sell part of its
stake in Malaysian Airline "as a means to degear a portion
of its immediate liabilities," KAF Research said.

Shares in Malaysian Airline closed Thursday at 4.08
ringgit, down 16 sen, or 3.8%. Naluri rose 2.3%, or four
sen, to 1.76 ringgit. (The Asian Wall Street Journal  31-
March-2000)


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

NATIONAL POWER CORP.: Gets $500M bond float share
-------------------------------------------------
The National Power Corporation (NPC) may be partly relieved
of its financial woes this year, after it gotten its $500
million share from the $1.6 billion worth of Global bonds
issued by the government in the international market.

NPC president Federico E. Puno bared the amount was already
turned over to the power firm. Of the amount, $300 million
will be used to re-finance its maturing loans this year;
while the $200 million will partly bankroll its programmed
capital expenditures (capex).

The first tranche of the NPC retireable loan amounts to
$100 million and is due for maturation in May this year.
This forms part of the retrievable loans acquired through
the power firm's Euro bond offer in 1993.  On the other
hand, the second tranche of $200 million will be due in
November this year.

The NPC earlier said it opted to re-finance the maturing
loans by raising funds from the bond market, because this
is seen as a better option than having them restructured.
Meanwhile, the power firm allotted P20 billion capex for
year 2000. Its key projects are the upgrading,
rehabilitation and completion of its transmission
facilities.

Aside from NPC, another state-owned energy firm, Philippine
National Oil Co. (PNOC) is also eyeing a share of at least
$200 million from the proceeds of the bond offer.  The
company will use this to settle its obligation to Shell
Philippines Exploration B.V. (Spex) for the 10 percent
farmin share it acquired for the Malampaya natural gas
development project.

It was noted that the Philippine offer for this new batch
of bond issue consisted of $600 million of new 10-year
bonds maturing on 2010 with a coupon rate of 9.875 percent
and a new 25-year bonds maturing on 2025 carrying a coupon
rate of 10.625 percent.  At least 140 institutional
investors from the United States, Europe and Asia
reportedly placed orders for the bonds.

The price, according to the Department of Finance, was
slightly higher at 350-basis points over the 10-year US
Treasuries, but it could still be considered a favorable
rate. (Manila Bulletin  31-March-2000)

UNIWIDE HOLDINGS: SEC grants its 60-day debt suspension
-------------------------------------------------------
The Securities and Exchange Commission said it has granted
Uniwide Holdings Inc's request for a 60-day extension in
the suspension of its debt payments to creditor banks until
June 6.

SEC hearing officers Enrique L. Flores Jr. and Manolito S.
Soller in a signed order said all claims, actions, and
proceedings against the company and its subsidiaries will
remain suspended for the next 60 days or from April 7, when
its debt reprieve expires.

Along with the debt reprieve, Uniwide has also asked the
SEC to accelerate its approval of the submitted amended
rehabilitation plan since a good number of its creditors
have already given their go- ahead with the revised
recovery scheme.

With the approval of the suspension of debt obligations of
Uniwide, the company can focus on negotiating with
interested investors. Moreover, the approval of the revised
recovery plan will enable Uniwide to implement activities
which can only be done after it is sanctioned by the SEC.

Uniwide claimed earlier it has receive comments from 39
secured and unsecured creditors out of about 1,200
creditors. Among the secured creditors, three banks whose
total exposure to the Uniwide Group amounts to P1.531
billion filed their opposition to the amended
rehabilitation plan.

These oppositors comprise 22 percent of the total value of
the obligations to secured creditors. However, the receiver
continues to negotiate with these banks and "it most likely
they will eventually agree to the amended rehab plan with
the possible exception of one bank with a credit which
comprises 10 percent of the total value held by secured
creditors," Monico Jacob, chairman of the interim receive
committee of Uniwide said.

On the other hand, unsecured creditors with total exposure
of P68.815 million opposed the rehab plan mainly because
they object to the 50 percent discount held on their
credit.

Jacob said the SEC's approval is "absolutely necessary"
because of the need to close the transaction with Casino
Guichard-Perrachon, the French retail giant which will pay
P3.57 billion in cash for 89.2 percent of Uniwide,
subsidiary, Uniwide Sales and Warehouse Club Inc. (USWCI).

Uniwide is badly in need of new money as it continues its
losing streak, posting a bigger net loss of P2.665 billion
in 1999 compared to P667.2 million in the previous year.
In an order, the SEC said the extension will give the
commission time to study and assess the viability of
Uniwide's revised rehabilitation plan and obtain comments
of the company's creditors.  Uniwide closed down 0.02 peso
at 0.50.  (AFX News Limited  31-March-2000, The Philippine
Star  01-April-2000)


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

CLOB INT'L: 93% of Clob investors take up EffCapital offer
----------------------------------------------------------
Some 93% of investors holding 11 billion units of frozen
Malaysian securities previously traded on Singapore's
Central Limit Order Book (Clob) exchange have accepted the
proposal by Effective Capital Sdn Bhd to unlock those
securities for eventual trading on the KLSE.

Singapore's Central Depository (CDP) said it had handed
over to Effective Capital yesterday the acceptances
received from 160,313 Clob investors.

"This accounts for 11.04 billion shares, or 98% of total
Clob shareholdings in CDP's nominee account with the
Malaysian Central Depository," said a Singapore Exchange
(SGX) statement.

As for those who did not sign up for Effective Capital's
offer, the statement said CDP would send them a letter in
November 2002 asking them to consider a second scheme that
was also supported by SGX and the KLSE.

The proposal by Effective Capital involves the migration of
the frozen securities into individual accounts of the
investors and their staggered release for trading on the
KLSE over a 16-month period. The investors would be charged
a 1.5% fee for the service.

The second scheme agreed by the two exchanges would involve
releasing the securities in tranches over nine months from
January 2003, with investors paying a 1% fee to KLSE
subsidiary Securities Clearing Automated Network Services.
(The Star  01-April-2000)

DBS GROUP : Plans US$500M 10-year debt issue
--------------------------------------------
DBS Group Holdings will be tapping the international
capital markets again, this time with a US$500 million
(S$857.3 million) 10-year subordinated debt issue.

The roadshow starts today in Europe, and the price and
yield of the issue will be set at the end of this week or
early next week, Michael Dee, managing director and head of
Asian debt capital markets at Morgan Stanley Dean Witter,
told BT.

Morgan Stanley, DBS Bank and Goldman Sachs & Co will
jointly manage the issue.  Mr Dee said the roadshow focuses
on Europe because US investors already know DBS after its
ground-breaking 10-year subordinated note issue last year
which was widely regarded as a huge success by the debt
market.  The latest issue comes shortly after DBS announced
an impressive set of results for 1999.

"It does help considerably in educating people about the
credit," Mr Dee said of the timing. "I think it's also
opportunistic. Market conditions are good. So far, interest
has been strong."

DBS recently announced that its net profit in 1999 surged
more than nine times to $1.07 billion, boosted by higher
net interest income as well as strong profits from
proprietary trading, stockbroking and investment banking.
But provisions for its Thai subsidiary, DBS Thai Danu,
remained heavy. The unit accounted for $766.3 million or 60
per cent of total provisions.

Giving an indication of the possible pricing of the new
issue, Mr Dee said DBS' existing 10-year subordinated bonds
are currently trading at 188-190 basis points over US
Treasury bonds, narrowing from spreads of 195-196 basis
points when they first started trading. "It has performed
extremely well even through some volatility."

Moody's recently upgraded its rating of the existing notes
to Aa3 from A1. They are also rated A- by Standard &
Poor's.  DBS' first subordinated bond issue last year was
met with such an enthusiastic response that the issue size
was raised to US$750 million from a US$300 million to
US$500 million range. Even so, the issue was oversubscribed
with investors applying for US$1.4 billion of notes.

The issue was the first subordinated note issue by a
Singapore bank after the Monetary Authority of Singapore
revised capital adequacy guidelines to allow banks to hold
2 per cent of capital requirements as tier-2 capital.
It was also the first Asian bank capital issue since the
regional crisis.

Holders of subordinated bonds receive lower priority than
other bond holders when there is liquidation or asset
distribution. (Business Times  29-March-2000)

HONG LEONG ASIA: Posts S$2.4M loss
----------------------------------
The continued downturn in Singapore's construction sector
has dealt a blow to Hong Leong Asia, which sank into the
red last year with a net loss of S$2.4mil compared with a
previous gain of S$16mil.

Turnover for the year was S$301mil, down 34% from a year
earlier, the Singapore Business Times reported.  Company
chairman Kwek Leng Beng attributed last year's poor showing
to the recession in the construction industry, which led to
severe price competition across all its divisions.

Despite the negative bottom line, the board has recommended
a first and final dividend of 5%, which is half the
previous payout. For the current year, Kwek referred to a
recent Ministry of Trade and Industry (MTI) report which
said the construction sector in Singapore was expected to
contract again this year.

Thus, the Hong Leong Asia board expects 2000 to be another
difficult year.  The medium-term prospects, however, looked
brighter, Kwek said. (The Star  01-April-2000)


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

CENTRAL HOTELS & RESORTS: Sells Burma property for $4.5M
--------------------------------------------------------
Thailand's Central Hotels and Resorts Plc (Centel) has
finally found a buyer for its money-losing hotel property
in Burma, after nearly two years of searching.

The company recently closed a deal with UK-based Intership
Co for the 133-room Central Floating Hotel in Rangoon, for
US$4.5 million (about 166 million baht).  Under the deal,
Intership will lease the hotel for $3,200 a day, and after
three years, the outstanding balance of about $1 million
will be paid up in full, said Centel executive vice-
president Gerd Steeb.

"The buyers didn't want to pay the full amount at once, but
we have a purchasing guarantee from them."

Intership plans to move the hotel ship to Singapore for
renovations before relocating it to East Timor. Last year,
Centel wrote off 112 million baht because the floating
hotel had been running in the red since it was opened in
1994.

"We will profit from the sale of the hotel and profits will
be written back on the balance sheet," said Mr Steeb.

Centel bought the hotel in 1994 for $5.6 million, or 140
million baht at the prevailing exchange rate. The company
now operates 11 hotels and resorts in Thailand and two
properties in Nepal and Bangladesh. Despite the sale,
Centel still has a presence in Burma through the joint
operation of Hotel Equatorial Rangoon, with the Hotel
Equatorial network.

Last year, Centel earned 3.4 billion baht in revenue, up
6.4% from 1998, but net profit fell by 77.2% to 41.2
million baht, mainly because of a large exchange-rate
exposure. Of its total revenue, about 1.5 billion baht was
from hotels and resorts, and 1.9 billion from its fast-food
businesses.

Centel planned to raise the contribution of fast foods to
overall profits in the next five years through expansion.
This year, Centel will spend between 200 million and 250
million baht to open 70 more outlets for its chains: KFC,
Mister Donut and Baskin Robbins ice-cream. The new branches
will be mostly located upcountry.

Tricon Global Restaurants, the group's partner in KFC,
expected the company to expand the chain to another 17
provinces, said Centel president and CEO Suthikiati
Chirathivat.  Centel expects at least 17% growth from fast
food this year. About 20% growth is projected from KFC,
which last year made a 26 million baht profit. KFC has also
joined with Tricon to tap into the Internet to improve
logistics and distribution.

Mister Donut is expected to show a better performance after
its turnaround, earning a four million baht profit for the
first time last year. Baskin Robbins, which lost about 15
million baht both on its factory and Baskin Robbins outlets
last year, is projected to break even this year. By the
third quarter this year, Baskin Robbins will export ice-
cream to the Philippines which will help increase capacity
utilisation at its factory by 20%.

The group will then expand its export markets to Indonesia
and Vietnam.  Centel operates 92 KFC, 137 Mister Donut and
72 Baskin Robbins outlets. Some 55 Baskin Robbins branches
are owned by Centel and the rest are run by franchisees.
Mr Suthikiati said Centel was looking for new international
fast food franchises not in the same area as the existing
food lines. A local fast-food chain was also being studied,
he said.

This year, the company will require two billion baht in
medium- to long term-funding. Centel will also issue
debentures worth 1.2 billion baht to support a new hotel
project. (The Bangkok Post  31-March-2000)

SIAM YAMAHA : Bought out by Japan partner
-----------------------------------------
Kasem Narongdej will step down as the chairman of Siam
Yamaha as Japanese partner Yamaha Motors has finalised its
plan to take over a 51 per cent stake in the Thai
motorcycle company.

Following more than two years of negotiations, Yamaha has
agreed to inject Bt2.8 billion of new capital into Siam
Yamaha, according to a source from the Bank of Thailand,
allowing it to succeed the Narongdej family's KPN group as
the largest shareholder in Siam.  As a result, the
Narongdej family becomes merely a shareholder in the
company, leaving the Japanese to manage Siam Yamaha.
Praphan Poltanavasit would no longer hold the position of
Siam's president, industry sources said.

However, another source close to the deal said new capital
injection from Yamaha would amount to nearly Bt4 billion.
Siam Yamaha will hold a press conference on Monday to
outline changes to shareholding and management, as well the
completion of debt restructuring.

The takeover plan can go ahead now as creditors of Siam
Yamaha have finally agreed on a plan to restructure debts
owed by Siam Yamaha and three other KPN subsidiaries.
According to a Bank of Thailand source involved in KPN's
debt-restructuring process, the creditors have agreed to
reschedule the repayment period to be in line with the
company's revised cash flow in the future. The creditors
have also agreed to a 60 to 70 per cent haircut of the
debt, which comes to about Bt10 billion.

Major creditors include Bangkok Bank , Krung Thai Bank and
Bank of Tokyo-Mitsubishi.  The takeover by Yamaha, which
owns the trademark and the technology, is expected to give
a major boost to Siam Yamaha, which has substantially lost
its market share to Honda during the past two years of
economic turmoil.  Thanks to economic recovery, the local
motorcycle market saw rapid growth in the first two months
of this year.

Meanwhile, Dow Jones Newswires reported from Tokyo that
Yamaha Motors, a major motorcycle manufacturer, yesterday
sharply revised downward its earnings outlook for the
current fiscal year ending the same day, citing a shortfall
in its retirement fund reserves.

Yamaha Motors now expects a parent net loss of �43 billion
(Bt15.8 billion) for this fiscal year, compared to its
previous forecast of a �26 billion loss. The company kept
intact its earlier forecasts for a parent pre-tax loss of
�10 billion on sales of �370 billion. (The Nation  01-
April-2000)

SRITHAI SUPERWEAR: To issue shares, comply rehab plans
------------------------------------------------------
Srithai Superwear will issue 245.71 million capital
increased shares to its creditors. The decision is in
compliance with its business rehabilitation plan that was
recently approved by the Central Bankruptcy Court.

Of the total shares, 107.114 million shares will be
allocated to those creditors who are the company's euro
convertible debenture holders, 126.46 million shares will
go to principal loan creditors and creditors under debt
instruments in foreign currencies and the rest will go to
creditors whose claims arise from the right to purchase
foreign currency.

As a result, the paid-up capital will increase to Bt2.857
billion, and the ownership of two major shareholders - the
Ungubolkul and Lertsumitrkul families - will be reduced to
14 per cent. (The Nation  01-April-2000)

THAI OIL CO.: Creditors back debt-revamp plan
---------------------------------------------
Thai Oil Co. creditors gave final approval to the state-
owned refiner's $ 2.29 billion debt-restructuring plan, a
lead creditor said.

"We had the creditors vote and it was a unanimous
approval," said Mike Collins, Chase Manhattan Corp.,
Managing Director for Asia Pacific, in a interview.

Thailand's bankruptcy court will rubber stamp the deal
Friday, and restructuring will begin in mid-April, Mr.
Coolins said. Creditors will $ 2.26 billion in debt voted
in favor of the plan, and those with under $ 30 million
abstained. There were no votes against the plan.

Under Thailand's new bankruptcy law, creditors that voted
in favor of the restructuring are protected from future
legal action by an abstaining party. " This deal is
important for Thailand because it shows the legal system is
working," Mr. Collins said.

Thai Oil restructuring will add to improved foreign
investor sentiment from a bankruptcy court ruling earlier
this month to force Thai Petrochemical Industry PCL to
begin restructuring its $3.5 billion debt, he added.
Investors are keen to see Thailand reduce problem loans,
which stand at over a third of all lending.

The restructuring reduces Thai Oil's debt to $ 1.4 billion
from $ 2.29 billion. Thai Oil was unable to service its
debt, which is mainly foreign denomunated, after the baht's
crash in mid 1997, coupled with declining refining margins.
The Petroleum Authority of Thailand, or PTT, will inject
$149 million in cash to buy back debt from lenders that
want to get out of the company. (The Asian-Pacific News
30-March-2000)

THAI PETROCHEM.INDUS.: Seeks approval to pay interest
-----------------------------------------------------
Thai Petrochemical Industry yesterday filed a request with
the Central Bankruptcy Court for permission to make
interest payments worth 421 million baht to 92 creditors.

Of the 92 creditors, five are part of a group which has
filed for the rehabilitation of TPI.  Among the creditors
are Bangkok Bank, International Finance Corporation, US
Export-Import Bank, Bank of America and Citibank. These
five last month won a court case ordering TPI into business
rehabilitation.

TPI started making quarterly interest payments to its
creditors in January 1998. Three payments were made, but
subsequent payments were held pending the results of the
rehabilitation petition.  However, as the creditors asked
for the continuation of the interest payments and TPI is
now undergoing rehabilitation, the interest payments are
considered an irregular transaction and TPI needed to get
prior approval from the court.

Earlier, TPI asked the court to allow it to borrow seven
billion baht as working capital from Bank of Ayudhya, and
the court gave its approval. TPI also conducted another
transaction which, it claimed, was a regular one and did
not require approval from the court. (Bangkok Post  01-
April-2000)

WONGPAITOON FOOTWEAR GROUP: To raise capital,convert debt
---------------------------------------------------------
Wongpaiton Footwear Group Plc (WFC), a leading
subcontractor for Reebok sports shoes, is planning this
year to raise its registered capital by Bt4 billion and
convert debt into equity, totalling Bt700 million, as part
of it's debtrestructuring plan.

To facilitate the plan, the company would soon set up
Wongpaitoon Planner Co Ltd with its creditors as major
shareholders.  WFC's managing director Vijak Sirising said
the plan had won over creditors at a meeting last week with
84 per cent of total liability, representing 62.5 per cent
of all creditors.

The company's four major creditors were Siam Commercial
Bank, Bangkok Bank, Bank of Ayudhya and Siam City Bank.
The company's planned to submit the rehabilitation plan to
the Bankruptcy Court by the middle of next month.  Under
the plan, the company hopes to have restructured its Bt3.7
billion debt by 2009. The plan also classifies the entire
debts into four categories, including working capital, new
debt (syndicated loans worth US$15 million or Bt570
million), and added benefits to major and small creditors.

He said the company would shoulder its Bt800 million
working capital debt at the end of the plan. Vijak said
that the registered capital increase of Bt4 billion would
inject fresh liquidity into the company, where Bt1.9
billion would be cash. The remainder would come from an
equity swap worth Bt700 million and the consolidation of
WFC's related business Siam Unisole Co Ltd.

The company's current registered capital was Bt280 million.
Wongpaitoon Planner Co Ltd will conduct the equity swap at
below par value at Bt3.10 a share under the Stock Exchange
of Thailand regulations.  Vijak added that the four
creditors agreed to provide a syndicated loan totalling $15
million to WFC to refinance a previous securitisation
organised by Daiwa Securities. WFC has to pay back this
debt within four years.

"The creditors preferred domestic financial support rather
than offshore loans so that is the reason why they want to
close the deal with Daiwa Securities," he said.

Vijak said the plan would dilute the stake of the company's
major shareholder, the Wongpaitoon family, from a current
65 per cent to 60 per cent, while creditors would hold a 35
per cent stake and the rest would go to small shareholders.
The Wongpaitoon family has agreed not to get involved with
any management decisions, he said. The creditors would take
control of all decisions made and have three to five people
to chair the new board of directors, which would total 11
people.

"WFC has a good relationship with its creditor as we agreed
to help put together the management plan," he said, adding
that the company's high production efficiency also
convinced the creditors to sign the plan.

Vijak said the company plans to increase earnings by an
average of 5 per cent per year during the nineyear debt
restructuring plan. It was expected that the company's
revenue would be Bt3 billion this year.  Reebok
International has already placed advanced orders for three
million pair of shoes worth $30$35 million for the first
half of this year.

The parent company has also signed a longterm contract with
the company until 2003. As a result, WFC's present monthly
revenue was more than Bt200 million. The annual export
volume in Thailand was 12 million pairs of shoes.
Production in Thailand accounted for 20 per cent of
Reebok's total yearly output of 60 million pairs, worth a
total of $2.4 billion.  Production in Thailand was expected
to grow by 46 per cent, on par with the expected growth in
the Asian region. (The Nation  31-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
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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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