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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

             Wednesday, April 12, 2000, Vol. 3, No. 72

                                    Headlines


* A U S T R A L I A *

MLC FUND GROUP: National justifies $4.56B MLC cost


* C H I N A  &  H O N G  K O N G *

DENNY'S FOOD: Cafe de Coral acquires Denny's Bakery
HANNY MAGNETICS HLDGS.: Ex-boss faces HK$80M fine


* I N D O N E S I A *

BANK OF CENTRAL CHINA: IBRA to sell its 30% stake


* J A P A N *

HIKARI TSUSHIN INC.: First half loss, woes
HIKARI TSUSHIN: Shares plunge 42% as stock resumes trading
ISUZU MOTORS: Expects to report loss of $1.1 Billion
NAGASAKIYA CO.: Cerberus Group to spur rebuilding
NISSAN MOTOR CO.: IHI to buy Nissan aerospace,defense ops
TOKYU DEPT.STORE: Share prices still waffling
UNIPRES CORP.: Submits rehab plan


* K O R E A *

DAEWOO MOTOR: Seoul sets out extra conditions on sale  
DAEWOO MOTORS: Car workers reject request to stop strike
HYUNDAI INVEST.TRUST & SECS.: To proceed with $$145M suit
KOREA HEAVY INDUS.: Chaebol to fight foreign takeover
NARA BANKING CORP.: Sale in rough seas


* M A L A Y S I A *

RENONG BHD: Eyes share swap to slash debt
RENONG BHD: On way to becoming debt-free next year


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

VICTORIA MILLING CO.: VMC mancom mulls negotiated sale
WESTMONT INVESTMENT CORP.: Broker files P40M suit vs it  


* T H A I L A N D *

ABICO HOLDING PLC: Reports net loss of Bt 419.19 million
BANGKOK METROPOLITAN BANK: HSBC postpones buying 75% stake
CHRISTIANI & NIELSEN: Settles more than half of loans
INTER FAREAST ENGINEERING: Reports audited net loss
NAKORNTHAI STRIP MILL: Revising warrant price under rehab
THAI GYPSUM PRODUCTS: Court discharges from bankruptcy
THAI MILITARY BANK: Shares drop 17 percent on profit-taking
THAI PETROCHEM.INDUS.: Prachai offers more to creditors


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

MLC FUND GROUP: National justifies $4.56B MLC cost
--------------------------------------------------
National Australia Bank yesterday rejected suggestions it
had overpaid for MLC, arguing that the $4.56 billion price
was in line with recent transactions and would generate
substantial synergies and cost savings.

After hawking the business to a range of players in the
past four years, including National Mutual, ANZ (twice),
Westpac and AMP, Lend Lease Corporation yesterday agreed to
part ways with the bedrock of its annual profit since the
early 1980s.

Lend Lease will plough $1.5 billion of the proceeds from
the MLC sale into capital management initiatives, which are
likely to include a fully franked special distribution and
a possible off-market buyback. Another $1 billion will
repay debt accrued after a spate of acquisitions worth $1.6
billion in the past year.

Lend Lease shareholders will vote on the deal in June, but
unlike the abandoned 1998 proposal to merge MLC with
National Mutual, NAB and Lend Lease have a definitive
agreement.  At more than 7 per cent of MLC's $34 billion of
funds under management, the price is well ahead of
Principal's $2 billion purchase last year of BT Funds
Management. The deal will catapult NAB to number three in
funds under management with $52 billion.

According to the bank, the purchase reflects a price-
earnings multiple of 20.7 times based on year 2000,
slightly ahead of the 20.2 times average of recent
transactions in Australia - including Commonwealth's $8
billion bid for Colonial. NAB managing director Frank
Cicutto said the bank's conservative forecasts were that
the purchase would generate $138 million in cost savings by
year three and would "earnings per share accretive" in year
one.

"I have no doubt this is the best option available to the
NAB," Mr Cicutto said yesterday. "In conjunction with MLC
executives, we have developed a low-risk acquisition
strategy."

NAB shares bounced 52 cents to $23.17 yesterday as the deal
eased concerns that NAB was instead set to embark on a
high-risk play for AMP. AMP fell 16.4 cents to $15.50,
while Lend Lease eased 51 cents to $19.79.  The head of
research at van Eyk Research, Rob Prugue, said MLC was a
lower-risk purchase than Commonwealth's purchase of
Colonial. This was because MLC took a "fund of funds"
investing approach that, unlike the key Colonial First
State funds management division, was not dependent on
several individual funds managers for its success.

"Knowing Lend Lease's strong negotiating skills, one would
have to think it was purchased at a premium," Mr Prugue
said.  "The premium can be justified if NAB can see the
ability to complete what MLC started and bring it forward
to increase profitability."

Lend Lease conceded that MLC, which earned a net profit of
$200.3 million in 1999, would have seen its earnings hurt
by the need for new investment as well as Ralph tax changes
that increase the burden on life insurance companies.

Even though the life industry is planning to increase
premiums to cope with the tax changes, some analysts
predicted MLC would suffer a $50 million after-tax hit to
its earnings stream over five years from the tax changes.
Lend Lease managing director David Higgins said: "I have
always believed long-term successful businesses have to be
global because they have to to be competitive.

"MLC is a great business with a great management team but
it needed to be global and to achieve that we had to have
greater scale domestically."

Mr Higgins said that while a joint venture had been
considered, as was proposed in the failed negotiations with
National Mutual three years ago, they were "difficult to
put together in a way that maximises value for both
parties."

Lend Lease has also cornered NAB into developing an ongoing
relationship that could see NAB market and develop Lend
Lease's real estate investment products through its global
distribution network.  The parties have also agreed to
explore joint opportunities in e-commerce.

Moody's Investors Service affirmed the credit ratings of
NAB and all its rated subsidiaries but placed the rating of
Lend Lease under review for possible downgrade. The
Australian Competition and Consumer Commission said it
would examine the acquisition but had not had a problem
with previous funds management mergers. (The Age  11-April-
2000)


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

DENNY'S FOOD: Cafe de Coral acquires Denny's Bakery
---------------------------------------------------
Cafe de Coral Holdings has acquired Denny's Bakery from
liquidated Denny's Food for HK$4 million in a move that
will help it cut operating costs 30 per cent. Chairman
Michael Chan Yue-kwong said the bakery's products initially
would be absorbed entirely by Cafe de Coral.

"Our bread consumption amounts to more than $20 million a
year," Mr Chan said. "We expect the acquisition will fully
cater for our demand for bread, and it will save us 30 per
cent in costs."

Denny's Food went into voluntary liquidation in January
after several years of operating losses.  Turnover at Cafe
de Coral, which has 22 per cent of Hong Kong's fast-food
market, had double-digit growth in the year to March 31, Mr
Chan said. Full-year results were expected to be released
soon, he said.

In the 12 months to March 31 last year, pre-tax earnings
rose 20.06 per cent from a year earlier to HK$110.75
million as turnover edged up to HK$1.16 billion from
HK$1.15 billion.  Mr Chan said the company's theme
restaurants, such as Bravo, were expected to have the
largest turnover gains in the period.

Ah Yee Leng Tong, the company's troubled Chinese-food
restaurant chain, had a rebound in earnings of about 30 per
cent last year, bolstered by the closure of some outlets.
Cafe de Coral, which has 174 restaurants, plans to open
eight more by July, six of which will be theme outlets. Two
will be mega-restaurants.  In addition, Mr Chan said the
company planned to change the decor of its restaurant
chains as part of renovations done every six years.

"We will go for classy and simple styles with wooden
furniture," he said.

The company also planned to invest $150 million this year
in the acquisition of food suppliers, he said. It was close
to reaching an agreement on the purchase of an unnamed
sausage-production plant, Mr Chan said.  The company also
intends to spend about $100 million on property purchases
this year. Cafe de Coral would also expand its food-
provision business for primary schools and institutions
such as hospitals, Mr Chan said.

"We hope to capture 10 per cent of the primary school
market in the next two years," Mr Chan said. (South China
Morning Post  11-April-2000)

HANNY MAGNETICS HLDGS.: Ex-boss faces HK$80M fine
-------------------------------------------------
Wong Sun faces a fine of up to HK$80 million if a report
expected this week finds the former Hanny Magnetics
(Holdings) boss guilty of insider dealing.

The penalty would "cripple" Mr Wong, already burdened with
medical bills because of diabetes, a kidney transplant and
a pacemaker operation, according to his lawyer, Kenneth
Chow.

In one of Hong Kong's longest insider-dealing cases - and
possibly one of the most expensive - the former high-flying
chairman made only brief appearances due to his health.
Mr Wong also was deemed medically unfit to personally
refute accusations that he made profits of HK$10 million to
HK$20 million from the illicit trades.

If the tribunal imposes the maximum penalty on Mr Wong -
three times that of the profit made or losses avoided,
along with the original sum - he could face a fine of HK$80
million, Mr Chow said.  The highest penalty imposed so far
has been $10 million, after a tribunal found tycoon Albert
Yeung Sau-shing guilty of insider dealing in 1998.

Mr Justice Michael Hartmann is expected to finalise the
tribunal's report on Mr Wong's case by the end of this
week.  The report will then be passed to Financial
Secretary Donald Tsang Yam-kuen.

The case has spanned a year, although this was partly due
to numerous adjournments as a result of pending medical
reports on Mr Wong.  The charges laid against Mr Wong
relate to the buying and selling of Hanny shares between
July 1994 and February 1995.  Six others - including Mr
Wong's secretary and his girlfriend's brother - have been
implicated. All denied the accusations.

Mr Wong was accused of using a web of accounts held by
friends or colleagues to sell at least 94.74 million shares
and buy four million shares by using inside information.
During the course of the hearing, one of Mr Wong's brokers
admitted lying to protect his client, in particular over
nominee accounts allegedly used by the former Hanny
chairman.

If Mr Wong is found to have benefited illicitly from the
inside information, a hearing would be expected to be heard
on how much he would be liable to pay in fines.  Strong
mitigation would be advanced by his lawyer, in particular
relating to Mr Wong's health and future prospects.

Mr Wong, who founded Hanny Magnetics, stepped down as
chairman when the company was taken over by Hutchison
Whampoa and International Tak Cheung Holdings in April
1996. The company was renamed Hanny Holdings. (South China
Morning Post  11-April-2000)


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

BANK OF CENTRAL CHINA: IBRA to sell its 30% stake
-------------------------------------------------
In a clear sign that Indonesia intends to push ahead with
its asset disposal programme despite unfavourable market
conditions, the government yesterday unveiled plans to list
the country's largest private bank next month on the
Jakarta Stock Exchange.

The Indonesian Bank Restructuring Agency (Ibra), which owns
92.8 per cent of Bank Central Asia (BCA), intends to sell
30 per cent of the bank in an initial public offer (IPO) to
raise US$200 million (S$342 million), about half the sum it
had originally hoped to recoup.

A source at Ibra told The Business Times that the agency
was also in talks with the Government of Singapore
Investment Corporation (GIC) to buy a "significant stake"
in BCA through the IPO mechanism.

"We're still waiting for GIC to come back to us so we can't
say how much it will buy but we're ready to offer a
majority stake (of the IPO)," the source added.

If GIC takes up Ibra's offer, it will be the second time
the Singapore government participates in an asset disposal
exercise conducted by Ibra.  Last month, GIC was a co-
investor with an international consortium led by the Cycle
and Carriage group which successfully bid for 38 per cent
of Astra International, Indonesia's largest automaker.

In January, Prime Minister Goh Chok Tong pledged US$500
million as part of the Singapore government's efforts to
help Indonesia revive its moribund economy. The fund, Mr
Goh said, could be used by government-linked companies to
invest, in partnership with private firms, in Indonesian
assets controlled by Ibra

Although the IPO for BCA has been delayed by more than two
months, market analysts said they were encouraged by Ibra's
willingness to conduct the sale in soft market conditions
as its success could underpin Indonesia's economic
recovery.

"From a market timing perspective, it is controversial but
the sale of BCA is good for Indonesia as a whole," said
David Chang, head of Research at Trimegah Securities.
"But I think investors will subscribe to the IPO and we
will definitely want to participate."  

The share sale also comes against a backdrop of stumbling
economic reforms and ethnic violence that has undermined
investor interest in the share sale. But the bank's stock
may still appeal to retail investors keen to increase their
exposure to stocks as benchmark interest rates fall in
Indonesia.

With 795 branches and more than 1,800 ATM machines located
throughout the vast archipelago, BCA is also viewed as a
must-hold stock for many fund managers.  Even with the
economic crisis lingering, BCA yesterday reported a 1999
profit of 641.3 billion rupiah (S$143.7 million) from a
loss of 28.4 trillion rupiah in 1998, thanks to gains on
foreign exchange and lower provisions for bad loans.

The bank is also poised to become a member of the Jakarta
Composite Index after the share sale, increasing its appeal
to fund managers who track the index or manage funds
focused on Indonesia.  BCA is one of several Indonesian
banks bailed out by the government during East Asia's
financial crisis. If the government sells 30 per cent for
US$200 million, it would value the bank, Indonesia's
largest non-government lender before the crisis, at US$667
million.

IBRA is selling 883.2 million shares for between 1,350
rupiah and 1,750 rupiah each. That works out to 1.5 times
the bank's book value per share, analysts said. Indonesia
has spent US$7 billion keeping BCA solvent since the bank
collapsed -- and was eventually taken over by the
government -- after runs on the bank in 1998. Part of the
Salim Group empire, the bank had close ties with former
president Suharto.

BCA's shares will be offered to investors between May 19
and May 23 and will be listed on the Jakarta Stock Exchange
on May 31. PT Danareksa is handling the sale in partnership
with Merrill Lynch & Co, Lehman Brothers and Bahana
Securities, a government-owned company. (Business Times  
11-April-2000)


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

HIKARI TSUSHIN INC.: First half loss, woes
------------------------------------------
Shock waves went through the Tokyo stock market late March
when Hikari Tsushin Inc. (9435) reported an interim
operating loss of 13 billion yen for the first half of the
business year through February, shattering investor faith
in the firm's claim to have a business model which
guarantees profit.

Hikari Tsushin stock has since failed to attract bids,
ending last Friday's trading at the ask-only price of
48,800 yen, an all-time low and one-fifth the high of mid-
February.  The firm is experiencing plenty of business
problems, said an executive of one mobile phone company.

It incurred a 5 billion yen drop in commission revenue in
the first half of the fiscal year that starts in August,
having failed to clear the mobile phone sales target set
under deals with service providers last autumn.

Hikari Tsushin earns two kinds of commissions. One type is
paid by mobile phone operators when the company sells
phones on their behalf. The other is the so-called "stock
commission," a set percentage of the monthly call charges
paid to service providers by subscribers signing up at
Hikari Tsushin outlets.

Stock commissions, which average 300 yen per subscriber per
month, continue to be paid to Hikari Tsushin unless
subscribers change service companies.  The company sells
phones on behalf of all mobile phone operators except NTT
DoCoMo Inc. (9437), and accounts for 35% of their
subscriptions. From this strong market position, Hikari
Tsushin earned 22.9 billion yen in stock commissions in
fiscal 1999 through August, a fivefold increase on the
position three years earlier.

Hikari Tsushin President Yasumitsu Shigeta stresses that
"the recent operating loss is a temporary phenomenon" and
that the much trumpeted business model remains relevant and
potent. In fact, mobile phone service companies intend to
maintain, more or less, the same contract terms with the
firm.

The unexpected operating loss revealed that Hikari
Tsushin's rapid rise was based on the steep growth of the
mobile phone market which saw a sharp increase in sales
driven by the strategy of service providers of giving
priority to expanding sales over profitability.

But many sales agents failed to clear high targets for the
first half of this business year. Some even arranged bogus
sales contracts.  To cope with these problems, Hikari
Tsushin closed 500 outlets at the end of the last business
year and cut the target number of outlets for the current
period to 2,000 from 3,000.

The company is expected to see its cash flow produce a red-
ink figure somewhere between 80 billion yen and 100 billion
yen this business year due to increased trade receivables
and expanded investment in venture firms.  It has already
raised 170 billion yen by issuing new shares and bonds and
new bank loans.

Shigeta says his company has no funding problem, with tens
of billions of yen readily on hand.  Since Hikari Tsushin
listed last year, Shigeta has been striving to see growth
at the firm match the once skyrocketing stock price.
Securities analysts, however, now suggest that Hikari
Tsushin has reached the point where it should review its
management structure, indicating that a temporary slowdown
in growth may prove unavoidable. (Nikkei  10-April-2000)

HIKARI TSUSHIN: Shares plunge 42% as stock resumes trading
----------------------------------------------------------
Shares of Hikari Tsushin Inc. resumed trading Monday for
the first time since March 31, but closed 42 percent lower
as investors remained skeptical of the company's earnings.
The shares closed at 45,800 yen ($434), down 33,000

The stock had not traded for six straight sessions, as sell
orders overwhelmed buy orders. The Tokyo Stock Exchange
requires that the number of buyers and sellers be about
equal for a stock to trade.

The company, a cellular phone sales and service company
with significant Internet investments, surprised the market
on March 30 by sharply cutting its earnings forecast to
show an operating loss of 13 billion yen in the six months
to February, just weeks after saying it would post a 6
billion yen profit.

Hikari also had been hurt by criticism about its management
practices and investment downgrades. (The International
Herald Tribune  11-April-2000)

ISUZU MOTORS: Expects to report loss of $1.1 Billion
----------------------------------------------------
Isuzu Motors inc. said it expects to post a group loss of
110 billion yen ($ 1.1 billion) for the year ended March
31, revesing a previous forecast for a profit of five
billion yen.

The truck maker's performance is typical of the gloomy year
many Japanese auto makers have experienced. Isuzu, which is
49 % owned by General Motors Corp., said it lowered its
estimates because of a decisionn to book greater reserves
for future retirement-fund payments, as well as sluggish
domestic sales and appraisal losses on shares that the
company holds in its affiliates.

An appreciation of the yen, which makes products produced
in japan more expensive overseas and eats into profit
earned abroad and brought home, also contributed to Isuzu's
poor performance.  Isuzu's group sales are forecast at 1.6
trilion yen, down 5.9% from the 1.7 trillion yen projected
earlier, the car maker said.

On a group basis, Isuzu said it would book 94 billion yen
in additonal reserves for pension fund payments for the
year. Originally, the company expected to book about 700
million yen for suck payments. Isuzu is also expected to
book roughly 53 billion yen of appraisal losses on shares
that it holds in affiliates.

Isuzu will likely post 140 billion yen in special losses
for the year. These will be partly offset by about 22
billion yen in special profit from the sale of real-estate
holdings, a company offcial said. Isuzu said it wouldn't
pay a dividend for the second straight year.  A GM
spokesman said the Detroit automaker already accounted in
1999 for any effect of Isuzu's charges for pension
expenses. (Asia Pacific News  10-April-2000)

NAGASAKIYA CO.: Cerberus Group to spur rebuilding
-------------------------------------------------
Nagasakiya Co. (8262) announced Monday that it has accepted
U.S. investment fund Cerberus Group's offer to become the
financial sponsor for the failed supermarket chain
operator.

In February, Nagasakiya, with total debt exceeding 300
billion yen, filed for court protection from its creditors
under the Corporation Rehabilitation Law.

The two firms signed a memorandum Monday. Under the
agreement, Cerberus Group, which specializes in corporate
mergers and acquisitions, will help rehabilitate
Nagasakiya, providing funds during the rebuilding period.
The U.S. investment firm is now set to begin a full-scale
search for a receiver to run Nagasakiya.  Nagasakiya also
said it will spend 1 billion yen to open a new store in
Saitama Prefecture in October. (Nikkei  11-April-2000)

NISSAN MOTOR CO.: IHI to buy Nissan aerospace,defense ops
---------------------------------------------------------
Ishikawajima-Harima Heavy Industries Co. (7013) announced
Monday it will buy the aerospace/defense division of Nissan
Motor Co. (7201).

IHI hopes to strengthen its aerospace operations with the
introduction of Nissan's solid-fuel rocket technology. The
company also hopes to get more orders for equipment from
the Ground Self-Defense Force.

Currently restructuring with the help of French automaker
Renault SA, Nissan is rushing to concentrate its resources
on the auto business. The company, which started to make
airplanes before World War II, will become the first
Japanese firm to completely sell off its aerospace
operations.

IHI will set up a wholly owned subsidiary to take over the
operations on July 1 as well as 1,020 Nissan group
employees.  The purchase will include the division's main
plant in Tomioka, Gunma Prefecture, as well as an R&D
center in Kawagoe, Saitama Prefecture. These two locations
alone have 860 employees, who will soon be working for IHI.
Another 160 will come from a Nissan aerospace design
subsidiary.

The purchase price is believed to be about 40 billion yen,
but "will not be disclosed for the time being in
consideration of Nissan," said an IHI official. The
aerospace division had sales of about 51 billion yen in the
year ended March 31, 1999.  Its main products are solid-
fuel rocket engines, defense equipment and the M-5 rocket
of the Ministry of Education's Institute of Space and
Astronautical Science.

"The cost of the purchase will hurt earnings for the first
couple of years, but results will be seen beginning the
third year," said a senior IHI executive. (Nikkei  11-
April-2000)

TOKYU DEPT.STORE: Share prices still waffling
---------------------------------------------
Tokyu Department Store Co. (8232) shares fell to 79 yen on
Feb. 24 amid a general sale of shares of restructuring
retail stores following an announcement by Nagasakiya Co.
(8262) that it was filing for reorganization. Since then,
however, Tokyu shares have risen on bargain-hunting to
about 110 yen.

In January, the company unveiled a restructuring plan that
will carry it through January 2005. Under the plan, the
company will slash debt by around 100 billion yen from 310
billion yen, consolidate subsidiaries to roughly 20 from
52, and sell off its retailing business in Hawaii.

Tokyu hopes to put the hardest parts of the plan behind it
in the first fiscal year, which ends in January 2001. It
intends to take a 56 billion yen extraordinary loss on a
group basis, projecting a consolidated net loss of just
over 45 billion yen.

Many analysts agree with Kenji Tsukazawa of Jardine Fleming
Securities Ltd., who says, "Even if the company
accomplishes its restructuring and reduces debt according
to plan, it is hard to predict whether it will recover its
sales power."

Some observers believe the company should focus on cutting
inventory, which will probably swell as revenue shrinks.
The restructuring plan is valued for the scenario it
outlines, but the share price will require fresh incentives
to rise higher, especially higher sales at Tokyu stores.
(Nikkei  11-April-2000)

UNIPRES CORP.: Submits rehab plan
---------------------------------
Unipres Corp. (5949), a specialist producer of pressed
automobile parts affiliated with Nissan Motor Co. (7201),
has drawn up a restructuring plan calling for domestic
factory closures, staff cuts and expansion overseas,
company sources said.

A factory in Kanagawa Prefecture will close by the end of
fiscal 2002 and a wholly owned unit in Kyoto Prefecture by
the end of fiscal 2001. Personnel from the two facilities
will be transferred to other plants.

At the same time, Unipres will slash 550 jobs, or 20% of
its domestic work force. The streamlining measures are
expected to save the company 12 billion yen over the next
three years.

The firm also plans to strengthen its overseas strongholds
in the U.S. state of Tennessee and Mexico. It is looking to
rising orders from Nissan and Renault SA, which will
jointly produce vehicles in Mexico, and other automakers.

The overseas work force will be boosted by 20% and the
offshore factories will take production equipment from the
closed domestic facilities. Strengthening European
operations is also under consideration.

Unipres is aiming for 5 billion yen in pretax profit on a
group basis by fiscal 2002. It recorded 220 million yen in
group pretax loss in fiscal 1998 on sales of 135.2 billion
yen. Nissan holds a 30.3% stake in Unipres and provides 90%
of the company's sales. (Nikkei  10-April-2000)


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

DAEWOO MOTOR: Seoul sets out extra conditions on sale  
-----------------------------------------------------
Apparently pressured by strikes at the nation's four
automakers, the Korean government has set out additional
conditions in the sale of ailing Daewoo Motor.

Minister of Finance and Economy Lee Hun-jai told reporters
Sunday that the government is strongly committed to
maintaining the current output capacity and manpower at
Daewoo Motor's passenger car plant in Pupyong, west of
Seoul, and its parts suppliers, even after the conclusion
of the sale.

"Prolonged maintenance of the present labor and production
capabilities at Daewoo Motor and its subcontractors will be
one of the most important criteria in selecting the
automaker's buyer," said Minister Lee. "The government will
thoroughly oversee the successful bidder to observe the new
conditions."

He added that some of the four foreign bidders - General
Motors, Ford Motor, DaimlerChrysler and Fiat - already
expressed intentions to keep Daewoo's labor and output
system at current levels for five years, while vowing to
foster Korea into a global parts supply base and also
implement large-scale R&D projects.

Warning against adverse effects from the government's extra
conditions and tough labor actions, however, analysts
raised fears that the international bidding for Daewoo may
be put in danger of being canceled.

"Amid a world-wide supply glut, aspiring foreign buyers may
give up bids for Daewoo, if labor resistance to foreign
takeover continues," said a creditor-bank official. "In the
worst-case scenario, the Daewoo bidding can be canceled."

Last Thursday, about 73,000 labor unionists at Hyundai
Motor, Kia Motors, Daewoo Motor and Ssangyong Motor walked
out on a one-week strike in protest of a possible sale of
Daewoo to a foreign company.  The striking workers
threatened to stage a motor parade in downtown Seoul this
week unless their demands for immediate cancellation of the
bidding are met. The auto unionists, fearing that foreign
control of Daewoo Motor would result in mass layoffs and
plant closures, are demanding nationalization of the
automaker.

None of the four foreign bidders have made official
comments on the latest developments, but a GM Korea
executive said that the labor's call for Daewoo, one of the
nation's most ailing firms, to be sold domestically is hard
to understand.  He also warned that a possible abortion of
the Daewoo auction will have immense negative effects over
foreign investments in other industries. (The Korea Herald  
11-April-2000)

DAEWOO MOTORS: Car workers reject request to stop strike
--------------------------------------------------------
Car workers have defied a government threat of punishment
and stayed away from their factories for a fifth day to
protest the likely sale of Daewoo Motor to a foreign buyer.

"Assembly lines remained crippled despite attempts by the
company to resume operations by mobilising non-union
members," said Lee Ho-joon, a union leader at a Hyundai
Motor plant.

Hyundai, the country's largest car-maker, has been crippled
since workers downed tools at all South Korean car firms
last Thursday, demanding the government scrap the planned
auction of Daewoo Motor.  The joint strike, which will last
until tomorrow, prompted the government to issue a tough
warning that striking workers would be punished for causing
huge losses to the country's car industry.

"We will take stern action against illegal strikes by car
unions over Daewoo Motor's auction," Finance and Economy
Minister Lee Hun-jai and 10 other cabinet members said.

They urged unions to stop the strike, saying Daewoo Motor's
sale was "a very important issue that could sway our car
industry and economy."  The warning coincided with a search
by prosecutors for 17 union leaders from Daewoo and Hyundai
for leading illegal strikes and causing losses to their
firms. (South China Morning Post  11-April-2000)

HYUNDAI INVEST.TRUST & SECS.: To proceed with $$145M suit
---------------------------------------------------------
Hyundai Investment Trust & Securities Co Ltd has said that
it will proceed with its litigation against JP Morgan for
the US$145mil loss incurred by Hyundai after investing in
derivatives in 1996.  Hyundai Investment said JP Morgan was
responsible for the company and other local financial
institutions making loss-making investments in high-risk
derivative products related to the baht and rupiah. (The
Star  11-April-2000)

KOREA HEAVY INDUS.: Chaebol to fight foreign takeover
-----------------------------------------------------
As well as trying to avert the takeover of Daewoo Motor by
General Motors, the chaebol have recently embarked upon a
campaign to prevent Korea Heavy Industries & Construction
Co., or Hanjung, from falling into foreign hands.

The government's decision Wednesday to give two foreign
companies - General Electric and ABB - priority rights to
buy a hefty 25 percent stake in Hanjung immediately sparked
an outcry in local business circles.

The Ministry of Commerce, Industry and Energy's (MOCIE)
failure to clarify its position as to whether the chaebol
will be allowed to take part in the bidding for another 26
percent stake in Hanung further angered the business
conglomerates.

Chaebol executives and economists warn that handing over
key industrial assets, such as Daewoo Motor and Hanjung, to
foreigners will result in the gradual collapse of mainstay
industries, forcing Korea to become a subcontractor for
western firms.

They also insist that massive layoffs and plant closures
will be among other adverse outcomes from foreign takeovers
of major industrial firms, forecasting that foreign
employers will scale down their Korean operations in line
with their global strategy. Indeed, the labor unions of
both Daewoo Motor and Hanjung have already declared their
opposition to the sale of their companies to foreign firms.

"With the foreign exchange crisis almost overcome, the
government does not have to show excessive enthusiasm
toward attracting foreign investments or overseas sales of
industrial assets," said Kim Kang-su, a spokesman for the
Korea Economic Research Institute, a chaebol think tank.

Hanjung, one of Korea's biggest state firms, is the builder
of power generation equipment and ship engines. It is
engaged in nuclear power projects in North Korea, China and
other Asian countries.  Hyundai and Samsung officials said
control of Hanjung by a foreign firm will transform the
profitable state-run giant into a mere subcontracting plant
for foreign firms.

"In the wake of a foreign takeover, Korea's dependence on
multinationals for the supply of key heavy industrial
technologies will deepen further," said a Hyundai Heavy
Industries executive.  "A lucrative state corporation built
with huge amounts of taxpayers money should not be sold to
foreigners at bargain prices."

Samsung Group officials noted that GE and ABB have a
history of implementing massive plant closures in the wake
of respective successful takeover bids in Hungary and
Britain.  Shortly after the commerce ministry's
announcement, spokesmen for both Hyundai and Samsung groups
said they remain unchanged in their desire to acquire a
controlling stake in Hanjung.

Clouding the position further, the powerful watchdog
Financial Supervisory Commission said yesterday it is
opposed to the privatization of Hanjung, citing the lack of
restructuring and managerial restructuring plans.

"MOCIE's plan to sell sizable stake in Hanjung to
foreigners and the stock market does not conform to the
government's restructuring policy," said a ranking FSC
official.

Hanjung's privatization program followed a crippling 48-day
strike that ended this week with the commerce ministry and
company management allegedly agreeing to exclude the
chaebol from the bidding competition.

Meanwhile, opposition to GM's bid for Daewoo Motor is
rapidly gaining momentum, possibly to the extent of forcing
the American automaker to quit the race. In the latest
development, the powerful Korea Federation of Small
Business (KFSB) declared its opposition to GM's takeover
bid. Park Sang-hee, chairman of the KFSB, said Wednesday
that GM's acquisition of the Daewoo unit will result in a
chain reaction of bankruptcies among local auto parts
makers.

The massive bankruptcies will in turn deal a devastating
blow to Korea's small and medium-sized businesses, Park
warned. Earlier this month, the Federation of Korean
Industries (FKI), the nation's most powerful chaebol trade
association, also came out against Daewoo Motor's sale to
GM, warning that selling Daewoo to a foreign firm would
sound the death knell for Korea's auto industry.

Voicing similar concerns, the labor unions of the nation's
four major automakers have also formed an alliance to deter
the sale of Daewoo Motor to GM or other foreign firms.
Labor-union leaders of Hyundai Motor, Daewoo Motor, Kia
Motors and Ssangyong Motor met last Wednesday and agreed to
establish a joint committee to fight Daewoo's sale to GM.
In various opinion polls, too, an overwhelming majority of
Koreans were reported to be against GM's Daewoo bid.

Prof. Chung Kap-young of Yonsei University, a renowned
local economist, said the sale of Daewoo Motor should not
be pushed through too quickly, urging regulators and
creditors to approach the issue from the longer-term
industrial prospective.

"The fact that a single major automaker can provide about
1.3 million jobs and create enormous pervasive effects
upstream and downstream should not be forgotten," he
cautioned. (Korea Herald  11-April-2000)

NARA BANKING CORP.: Sale in rough seas
--------------------------------------
The Financial Supervisory Commission (FSC) and Yeungnam
Merchant Banking Corp. said yesterday that they recently
resumed talks for the sale of ailing Nara Banking Corp. But
the negotiations are expected to proceed slowly due to
major differences in the terms of the takeover.

Yeungnam demands that the government recapitalize Nara
whose liabilities exceed assets by 1.9 trillion won, while
the FSC and the state-run Korea Deposit Insurance Corp.
want Yeungnam to share some of the burden in order to
minimize the amount of public money to be injected into the
troubled financial institution.

The FSC suspended Nara's operation after the merchant bank
plunged into a liquidity crisis Jan. 21.  Yeungnam
previously made contact several times with the FSC and KDIC
for a takeover of Nara, but talks stalled as they failed to
narrow differences over the terms.

Watchers say the tug-of-war between the two parties is
expected to continue for the time being.  But the
government has until Apr. 22, when suspension of Nara's
operations ends, to conclude the deal, as it can't extend
the suspension period.

If the talks break down, the KDIC will have to pay deposits
to customers. Given that public funds have almost been
exhausted, the deposit insurer is expected to have a hard
time raising the necessary cash. (The Korea Herald  11-
April-2000)


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

RENONG BHD: Eyes share swap to slash debt
-----------------------------------------
Renong is considering swapping its shares in Commerce
Asset-Holding, the nation's second-biggest bank, for bonds
Renong issued last year to creditors, to reduce debt.

Renong, Malaysia's largest and most indebted industrial
company, said the plan would be attractive to creditors but
did not give details. Renong sold M$8.4 billion (about
HK$17.13 billion) of bonds last September through its toll-
collector unit, Projek Lebuhraya Utara-Selatan, or Plus, to
stay afloat. The zero-coupon, seven-year bonds were priced
to yield 9.4 per cent per annum.

"Faced with the choice of waiting seven years for the bonds
to be redeemed, or getting [Commerce] shares, which have an
upside, I'm sure most creditors will prefer the shares,"
said Halim Saad, Renong's executive chairman.

Renong wants to cut its debt, which reached as much as M$20
billion - equal to 5 per cent of the country's private
sector debt - at the height of Malaysia's 1997 financial
crisis. Last month, Mr Halim promised Renong would repay
all its debt within a year, and would have a billion
ringgit in cash.  To do that, Renong is selling assets from
its 12 publicly traded companies.

Last week, Renong agreed to sell minority stakes in Time
Engineering, and phone unit Time dotCom to Singapore's
biggest phone company, Singapore Telecommunications,
raising more than M$2 billion cash.  Renong's shares have
risen 29.8 per cent this year, as investors are optimistic
the builder of the country's longest expressway - running
848 kilometres from Singapore to Thailand - can cut debt.

The company's shares have performed 15 per cent better than
the broad Emas Index during the same period.  Any swap of
Commerce Asset shares for Plus bonds may also boost the
bank's shares which have fallen 18.3 per cent in the two
months since Renong said it would sell its 143.6 million
shares in Commerce.

Renong's debt restructuring also extends to Intria, an
engineering company controlled by its United Engineers
Malaysia unit. Intria, which owes M$718 million, was sold
to United Engineers in February for M$371 million.
Intria expects to present a plan in the next 10 weeks to
work out its debt problems.

"In two and half months, Intria's debts will be
restructured. I've promised the lenders they will be paid
in full, plus interest," said Ramli Mohamad, Intria's
managing director. "There will be no capital reduction.
Nobody loses money." (South China Morning Post  11-April-
2000)

RENONG BHD: On way to becoming debt-free next year
--------------------------------------------------
Singapore Telecommunications' deal with Time Engineering
group has helped speed up Renong Bhd's bid to be totally
debt-free by the first quarter of next year.

Halim Saad, executive chairman of Renong, Time
Engineering's parent company, told reporters yesterday that
the group will now float Time Online (in June), Time dotCom
(July/August), Plus (December) and Prolink (next year) to
remove Renong's debts of RM5.4 billion (S$2.44 billion).

This is the first time Mr Halim has disclosed the listing
plans for Time Online, a subsidiary of Time dotCom, and
Prolink, owner of the huge tract of land at the southern
tip of peninsular Malaysia. The disclosure of the IPO plans
and other asset disposals, which will help put RM1 billion
in Renong's coffers, followed an in-principle deal between
Renong's 47 per cent associate Time Engineering and SingTel
last week.

On why SingTel was picked as Time dotCom's strategic
investor over Li Ka-Shing's Hutchison Whampoa, Mr Halim
said: "Because they, as a Singaporean company, would be
able to understand us." He said talks on the deal started
about a month ago. But it's still not a done deal, Mr Halim
was quoted as saying by various wire agencies yesterday.
"No deal is done until an agreement is signed."

He also hinted that he may give up his managing director
post at Time Engineering if the deal with SingTel is
sealed. This is to give SingTel a say in the management
despite its minority stake. "I will stay until the deal is
concluded... this thing is too technical for me," he said.

In the transaction, SingTel will buy 14.48 per cent of Time
Engineering for RM649.3 million from Time Investments
(Cayman) Ltd. Mr Halim claimed the offshore company was not
linked to the Renong group. Time and SingTel have not
disclosed who the shareholders of TICL are. At the same
time, Mr Halim said SingTel will buy 20 per cent of Time
dotCom -- a wholly owned subsidiary of Time Engineering --
for at least RM3 per share, translating into RM1.5 billion.
SingTel has also tentatively agreed to buy 20 per cent of
Time Online for an undisclosed sum.

Some analysts felt the price was a tad high. Time
Engineering's share price fell 20 sen to RM5.65 after
hitting a high of RM6.20 in early trading. PhileoAllied
Securities said: "SingTel's participation is certainly
positive for the Time group. It will provide the latter
with much needed cash to repay its large debts, and
technical expertise. However, we believe the price paid was
high and value Time's revised net asset valuation at most,
at about RM5.80 per share."

But analysts generally welcome the deal as beneficial to
both parties and said the alliance could challenge the
dominance of Telekom Malaysia. Telekom's share price has
fallen by RM2 to RM13.50 in two days on jitters that the
SingTel-Time partnership could erode its earnings.

The analysts said SingTel will have access to Time's fibre-
optics network of 5,200 km and the RM15 billion Malaysian
telco market. The cash infusion is also crucial to Time
Engineering, which has debts amounting to RM4.8 billion,
and in paving the way for the listing of Time Online and
Time dotCom this year.

With Time Engineering's woes out of the way, Mr Halim would
then proceed with the earlier plan to float Plus -- a
subsidiary of Renong associate United Engineers Malaysia
and the owner of the 848-km toll highway along the
peninsula -- to raise at least RM3.75 billion.

Mr Halim said Renong will raise about RM1.6 billion by
listing its 64 per cent subsidiary, Prolink Development. It
also hopes to raise RM2 billion from the disposal of its
12.25 per cent in Commerce Asset Holding Bhd. (The Business
Times  11-April-2000)


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

VICTORIA MILLING CO.: VMC mancom mulls negotiated sale
------------------------------------------------------
Determined to save ailing Victorias Milling Co. (VMC) from
liquidation, the management committee tasked to oversee the
sugar miller's rehabilitation has reportedly approached
three parties which have initially expressed interest in
VMC to discuss a possible negotiated sale.

BusinessWorld sources said the mancom has "approached"
Jardine Davies, Inc.; Jose Mari Chan, owner of Binalbagan
Isabela Sugar Co., Inc. (Biscom); and agribusiness firm
Cargill Philippines, Inc. to negotiate a sale.

The public auction for 567 million new shares of VMC failed
last March 20 after firms which have signified interest did
not submit a bid. The auction would have raised 567 million
Philippine pesos (PhP) (US$13.80 million at
PhP41.115:US$1)for the company.

Initially, five companies expressed interest in VMC. These
include the Gokongweis' JG Summit Holdings, Inc., Alliance
Global Group, Inc. (AGGI); Cargill; Biscom; and the
consortium of RCBC Capital Corp. and Central Azucarera Don
Pedro (CADP).

The sources said potential investors were turned off by
VMC's staggering debt and by the "very strict"
rehabilitation program.  VMC's debts to 32 creditor banks
have run up to PhP6.5 billion ($158 million) from PhP5.2
billion ($126.47 million) more than two years ago. Of the
PhP6.5 billion, PhP4.2 billion ($102.15 million) or 64.62%
are unsecured loans from 23 banks. VMC's assets, however,
are still more than adequate to cover for its liabilities.

Sources said a "substantial reduction in debt" is needed to
pave the way for the company's rehabilitation.
The mancom is supposed to submit an alternative
rehabilitation plan to the Securities and Exchange
Commission (SEC) 15 days after the failed bidding. The
mancom, however, has asked for more time to come up with a
proposal.

Bidding committee chairman and mancom committee vice-
chairman Gerardo Anonas is currently "out of the country"
and will be back on the 26th.  Isidro C. Alcantara, Jr.,
who is now president of VMC non-creditor Philippine Bank of
Commmunications (PBCom), meanwhile, has tendered his
resignation last February 22 as mancom chairman and
representative of the secured creditors following his
resignation as executive vice-president of Equitable PCI
Bank.

His resignation, which took effect February 29, was
"irrevocable."  Nominated in his place was Equitable PCI
Bank's Walter C. Wassmer, a VMC motion to the SEC showed.
Meanwhile, unsecured creditors of VMC have proposed to
convert their unpaid interest into direct equity to trim
down the debt level of the sugar miller.

Sources said the accrued interest from March 1997 up to
March this year "will not exceed PhP1 billion ($24.32
miilion)." Based on the proposal, clean creditors will
become VMC majority shareholders.  Aside from this, the
clean creditors have also proposed to scout for a joint
venture partner which will be willing to infuse PhP300
million ($7.30 million) into VMC.

The source said PhP150 million ($3.65 million) will be in
the form of direct equity, while the other half will be
"advances in the form of liability."

"The advances will be payable in three years," the source
added.  "Many wanted to come in subject to some
conditions... The rest of the rehabilitation plan will be
followed. The alternative rehabilitation plan should not
veer away from the plan approved by the SEC (Securities and
Exchange Commission)," the source said.

Under the original rehabilitation plan approved by the SEC,
PhP1.5 billion ($36.48 million) of the debt will become
convertible notes, while the balance will be paid over 15
years at 10% interest rate. There will be a three-year
grace period on principal payments. (Business World  11-
April-2000)

WESTMONT INVESTMENT CORP.: Broker files P40M suit vs it  
-------------------------------------------------------
A local brokerage house has filed a 40-million Philippine
pesos (PhP) (US$972,881 at PhP41.115:US$1)lawsuit against
troubled investment firm Westmont Investment Corp.
(Wincorp) for fraud and misrepresentation.

In separate cases filed with the Securities and Exchange
Commission (SEC), Pearlbank Securities and Manuel Tan, who
is Pearlbank chairman and also Wincorp's stockholder, said
it was made to appear as a borrower in several debt
instruments Wincorp issued to some of its investors.

It said it "owes nothing to Wincorp or its investors",
despite claims it borrowed over PhP274 million ($6.66
million). Pearlbank said it was unwittingly named a
borrower when several Wincorp investors demanded payment
early this year.

"(We) have no outstanding loan obligations or borrowing
with Wincorp," Pearlbank said.

However, last March 1, Huey Commercial, one of Wincorp's
funders, claimed it was told Pearlbank borrowed PhP4.9
million ($119,178) out of a total investment of PhP110
million ($2.67 million).

Pearlbank said "in representing to different investors that
(it) borrowed against their investments", Wincorp "violates
(Pearlbank's) right and reveals a device or scheme employed
by Wincorp amounting to fraud and misrepresentation
detrimental to the interest of the public."

Wincorp started facing liquidity problems after its funders
-- over 2,000 Binondo- and Cebu-based Chinese-Filipino
businessmen -- started pre-terminating their investments.
At least 20 companies linked with former Finance Secretary
Edgardo Espiritu, one of Wincorp's founders, and his
business associates were identified as the major borrowers
of funds pooled by Wincorp. Most of the borrowers were also
shareholders of listed firm Unioil Resources and Holdings
Co., Inc. which owns 100% of Wincorp.

The SEC is conducting an audit of the investment firm's
books. An SEC source admitted the brokers and exchanges
department (BED) is having difficulty finding evidence to
support the alleged fraudulent practices of Wincorp.
Wincorp is being investigated for allegedly violating the
"19-lender rule" prescribed under the Investment Houses Law
which limits to 19 the number of investors in an investment
house.

Meanwhile, Pearlbank has asked the SEC to "declare
Wincorp's confirmation advice and related documents
indicating (Pearlbank) as borrower to be without force or
at the very least, relieve (Pearlbank) of the legal
effects."

It also sought an audit of the investments in Wincorp of
Huey Commercial, Jonelen Management & Realty Corp., John Go
Beng Huy and Goson GBH Holdings and of Pearlbank's alleged
loans with Wincorp. (Business World  11-April-2000)


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

ABICO HOLDING PLC: Reports net loss of Bt 419.19 million
--------------------------------------------------------
Abico Holding Plc reported a group net loss of Bt419.19
million for the past year, compared with a net loss of
Bt637.217 million for the previous year.

The Stock Exchange of Thailand has posted the "NP" (notice
pending) sign for ABICO Holding (ABICO) as of today after
the company submitted its financial statements.

However, the SET will continue to suspend trading of
ABICO's shares until the firm, which is undergoing
financial rehabilitation, improves its performance
significantly. (The Nation  11-April-2000)

BANGKOK METROPOLITAN BANK: HSBC postpones buying 75% stake
----------------------------------------------------------
Hongkong and Shanghai Banking Corporation (HSBC), Europe's
biggest bank in terms of value, has once again delayed to
wrap up the deal to buy a 75 percent stake in Bangkok
Metropolitan Bank (BMB).

HSBC officials said the postponement was due to "a dispute
concerning some terms and conditions of the sale" as well
as political uncertainty arising from the imminent cabinet
realignment. The officials said, however, they expected to
conclude the deal by the end of this month or early next
month.  Last month, HSBC said it was close to an agreement
to buy 75% of BMB.

Meanwhile, BMB President Somchai Sakulsurarat expressed
anxiety for the central bank to conclude the deal, saying
that BMB's financial position is deteriorating, losing as
much as 250 million baht each month. He claimed the bank is
also six billion baht capital deficient.  Somchai also said
that the morale of the bank's staff is very low, not
knowing who would take control of the bank.

"After the government has completed selling off weak banks,
it should turn to focus on helping existing commercial
banks by lowering BIS ratio to a practical level, even
though foreign investors might disagree," he said.
(Bangkok Post  11-April-2000)

CHRISTIANI & NIELSEN: Settles more than half of loans
-----------------------------------------------------
Christiani & Nielsen (Thai) Plc (CNT) has restructured 1.7
billion baht of a total debt worth 2.2 billion baht.
The remaining debt, whose creditors are pension funds,
insurance companies and banks, is now under negotiation,
said director Danut Yontrarak.

Three options were proposed. The first is for CNT to buy
back bonds in cash with a 80% discount and pay 2% interest
of the coupon rate.  The second option is for CNT to buy
back the bonds at only 5% of its face value and give the
bond holders rights issues worth 20% of the bonds. The
remaining 75% will be paid by non-subordinated bonds with a
maturity of seven years and 5% interest.  The last is for
CNT to pay the bond holders with debentures, which will
mature in seven years and give 5% interest.

CNT defaulted its 2.2-billion-baht bond in November 1997.
The majority of bond holders agreed on restructuring but no
more details were mentioned.  Mr Danut said some bond
holders of the total of 12, which were pension funds, were
not allowed to buy ordinary shares in listed companies.

At the shareholders' meeting yesterday, an approval to
issue debentures worth 335 million baht for existing bond
holders to accommodate the third option, in case it was
selected by bond holders, was made. Moreover, the company
would raise the registered capital by 223 million baht from
1.36 billion baht. The new shares will be subscribed by
existing bondholders at three baht each.

Siam Commercial Bank is the largest shareholders of CNT
with a 43% stake, Land & Houses Plc 7%, the Crown Property
Bureau 32% and the rest for small shareholders.  CNT earned
total revenue of 1.4 billion baht, of which 20-30% came
from the construction of General Motors' factory.

Its accumulated loss stood at 680 million baht, down from
4.58 billion baht, as it made a capital write-down to clear
almost four billion baht in losses last year.  This year,
CNT projected to generate total revenue of 1.2 billion baht
as the construction industry is still sluggish. (Bangkok
Post  11-April-2000)

INTER FAREAST ENGINEERING: Reports audited net loss
---------------------------------------------------
Inter Fareast Engineering said its audited net loss for the
year ending Dec 31 was 566.6m bt, compared with a net loss
of 637.4m bt for the same period in the previous year. Its
audited consolidated net loss was 566.6m bt, compared with
a net loss of 389m bt for the same period in the previous
year. (Bangkok Post  11-April-2000)

NAKORNTHAI STRIP MILL: Revising warrant price under rehab
---------------------------------------------------------
Nakornthai Strip Mill said it would amend the sales price
per unit of its 3.3bn warrants under its debt-restructuring
plan, assuming that the exchange rate on the issue date of
warrants is 38 baht to the US dollar, to 5 satang a unit
from 50 satang. The date to determine the right for
subscribing for the warrants will be changed to April 11.
(Bangkok Post  11-April-2000)

THAI GYPSUM PRODUCTS: Court discharges from bankruptcy
------------------------------------------------------
Thai Gypsum Products Plc said the Central Bankruptcy Court
yesterday issued an order discharging it from the
rehabilitation plan, following the company's compliance
with the plan submitted in November 1999.  (AFX News
Limited  11-April-2000)

THAI MILITARY BANK: Shares drop 17 percent on profit-taking
-----------------------------------------------------------
Shares in Thai Military Bank (TMB) plunged more than 17 per
cent yesterday, but banking analysts were not surprised,
having predicted that investors would jump at profits
following last week's 18 per cent surge in the bank's
shares.

The bank's shares ended the day at Bt10 on turnover of 17.4
million shares.  Last Tuesday, the bank said it would raise
Bt40 billion in new capital through a rights issue, private
placement and participation in a government support
programme. According to the plan, it would issue 305
million new shares at Bt10 each in a 3-for-10 rights issue
and two warrants for each share.

Investors bought the stock in anticipation of reaping a
windfall from the warrants, which analysts appraised at
Bt3-Bt4 each. The subscription period for the rights issue
ended on Friday. The recapitalisation plan cheered
investors who see it as a chance for the ailing bank to
build up the reserves it needs to deal with problem loans.

But the military-controlled bank's decision to sell shares
to the government and local business tycoons, rather than a
foreign strategic partner, left most analysts unimpressed.

"While a successful recapitalisation would be unambiguously
positive for this bank, and the Thai banking sector as a
whole, we would argue that TMB would still not be a
compelling investment story," said ABN Amro analyst
Andrew Maule. "The plan does not involve any exciting new
partner or change in management."

Unlike larger banks, TMB has been unable to raise enough
capital to cover its bad loans, which account for one third
of its total lending.  Under minimum requirements set by
the Bank of Thailand, it needs to put aside just Bt12
billion in further provisions, although analysts said this
implies only an average 30 per cent write-off of the book
value of its bad loans. The bank is more likely to lose 50
per cent of the original value of its loans, analysts said.

Seamico Securities Plc said the stock's price should be
between Bt13.50 and Bt18 if the recapitalisation is
successful.  Part of the reason for last week's rise was
speculative buying by retail investors. Most brokerages are
advising clients to sell on the current strength given
longer-term concerns about the bank's earnings potential.

Without the free warrants, investors might not have been so
interested in the stock, analysts said.  One of the major
disappointments of the plan is that the bank wants to sell
most of the new shares to local businessmen, instead of
bringing in a foreign partner, as a number of weak Thai
banks have done since the 1997 financial crisis.

"TMB will not have any advantages over other banks barring
a team-up with a strong partner," said Asset Plus
Securities Co Ltd in a recent report. "Longer term, we do
not like TMB as it is not a leader and has no niche."

The bank will find it hard to compete with other foreign-
managed small banks for retail customers, analysts said.
Its military management lacks the retail banking know-how
of institutions such as Bank of Asia, which ABN Amro took
over two years ago, they added. TMB plans to sell most of
its 691 million private placement shares next week to
investors with no banking experience.  Among them are
telecom magnate Thaksin Shinawatra and whisky tycoon
Charoen Sirivadhanabhakdi, TMB president Thanong Bidaya
said last week.

The military, which currently holds about 35 per cent of
the bank, will remain the largest shareholder after the
recapitalisation, he said. (The Nation  11-April-2000)

THAI PETROCHEM.INDUS.: Prachai offers more to creditors
-------------------------------------------------------
Prachai Leopairatana, chief executive of Thai Petrochemical
Industry Plc (TPI), is extending an olive branch to
creditors, hoping to win approval for his rehabilitation
plan so that he will continue to keep his management job at
the beleaguered petrochemical company.

In this generous proposal, Prachai has offered creditors 51
per cent of TPI Planner Co Ltd, formed as a special vehicle
to run TPI. The Central Bankruptcy Court has ruled TPI
insolvent and placed it in receivership. The process now
covers a vote on a planner appointed to rehabilitate TPI.

Prachai indicated yesterday that the rehabilitation plan
proposed by TPI Planner would get more than the one-third
of the voting support required by law from the creditors.
This will allow TPI Planner to run TPI, which is now
saddled with debt of US$3.5 billion (Bt133 billion).

At the same time a group of creditor banks, led by Bangkok
Bank, has hired Ferrier Hodgson, a consulting company, to
counter-propose a rehabilitation plan for TPI. Ferrier
Hodgson has formed Effective Planners Co, hoping to get at
least two-thirds of the support from other creditors to
manage TPI during the rehabilitation period.

The creditors are scheduled to meet on April 19 to vote on
Effective Planners and TPI Planner. Thai law gives the
debtor a better chance to rehabilitate its insolvent
company to encourage the debtor to enter the bankruptcy
process.

Prachai said the TPI Planner rehabilitation plan broadened
the participation of the creditors in managing TPI, for the
creditors were allowed to send five representatives to sit
on the board of TPI Planner, compared to four for the
existing management of TPI.  Moreover the creditors can
rely on two-thirds of their vote to change the make-up of
the board.

"I am quite confident that our plan will get the support of
more than one-third of the creditors," Prachai said. (The
Nation  11-April-2000)


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