---

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

                               A S I A   P A C I F I C

                Tuesday, April 25, 2000, Vol. 3, No. 80

                                     Headlines


* A U S T R A L I A *

AVONWOOD HOMES: Fate still uncertain
COCA COLA AMATIL: $400M wiped from value
MUSEUM OF CONTEMPORARY ART: Open, empty; fundless in 2 mos.
REINSUR.AUSTRALIA CORP.: Board changes after losses
VIDEO EZY: ACCC's video tiff set for courts


* C H I N A  &  H O N G  K O N G *

AGRICULT.BANK OF CHINA: Gov't sets up debt-clearing co.
BANK OF CHINA: Gov't sets up debt-clearing co.
CHAI NA TA CORP.: Creditors approve restructuring
CHINA CONSTRUCTION BANK: Gov't sets up debt-clearing co.
INDUS.& COMM.BANK OF CHINA: Gov't sets up debt-clearing co.
SIU FUNG CERAMICS: Final curtain looms in saga


* I N D O N E S I A *

PT ASTRA OTOPARTS: Reports restructure progress to JSE
PT BANK DANAMON: Among 20 IBRA wants to merge
PT BANK NIAGA: Among 20 IBRA wants to merge
PT BANK UNIVERSAL: Among 20 IBRA wants to merge
PT NEWMONT MINAHASA: Tax dispute settled


* J A P A N *

DAIWA SECURITIES GROUP INC.: To cover pension gap in FY99
HIKARI TSUSHIN: `Last chance' to dispel fear
ICHIDA & CO.: To put head office up for sale
IKEDA BUSSAN CO.: To shut down Aichi plant
LEC TOKYO LEGAL MIND: Software trio jointly sue
MARUSHO & CO.: To put head office up for sale
NIKKO SECURITIES CO.: To cover pension gap in FY99
NOMURA SECURITIES CO.: To cover pension gap in FY99
TACHIKAWA & CO.: To put head office up for sale


* K O R E A *

ASIAN BANKING CORP.: Swiss banking group to take over
SAMSUNG MOTORS: Creditors, Renault close to a deal
SAMSUNG MOTORS: Creditors accept loss-sharing deal


* M A L A Y S I A *

EDARAN OTOMOBIL NASIONAL: DRB-Hicom upbeat on Petronas deal
EDEN ENTERPRISES: New shareholders after restructuring
PARK MAY BHD: Gets SC nod for debt restructuring exercise
TIME ENGINEERING: SingTel looking for purchase bargain


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

ANSCOR: Losses soar 176% in 1999
BW RESOURCES: Justice dep't subpoenas Tan, seven others
NATIONAL POWER CORP.: Oversight body for asset bidding?
PHILIPPINE AIRLINES: Tan offering to European carrier


* T H A I L A N D *

BANGKOK BANK : To report loss
BANGKOK BANK: Denies any interest in EffPlanner
BANK OF THAILAND: Charges to be heard against ex-staff
DBS THAI DANU BANK: To report loss
GSS ARRAY TECHNOLOGY PCL: Pair of deal contingencies met
KARAT SANITARYWARE PLC: Announces debt restructuring
PREECHA GROUP PLC: Reports progress of debt restructuring
STANDARD CHARTERED NAKORNTHON BANK: To report loss
THAI ENGINE MFG: Debt restructuring starts
THAI PETROCHEM.INDUS.: TPI management change
THAI PETROCHEM.INDUS.:Prachai cooperating,smooth transition


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

AVONWOOD HOMES: Fate still uncertain
------------------------------------
Hundreds of home buyers caught in building heavyweight
Avonwood's financial crisis are still awaiting news of the
firm's fate.

The State Government said yesterday it was monitoring
meetings between the company, its creditors, insurers and a
merger candidate.  A spokeswoman for Consumer Affairs
Minister Marsha Thomson said the government did not want to
pre-empt the result of the talks.

Avonwood Homes is fighting to avert collapse after losing
the support of its financier last week.  Work on 500
partly-built homes has been suspended until a financial
deal is struck.  The company also has a further 400
contracts on order.  Worried sub-contractors have scurried
to repossess goods including windows and roof tiles from
sites.

Industry sources said Avonwood appeared to have taken on
too much business.  Several options are being considered.
These include refinancing through another bank, selling or
merging with Clarendon Homes, of Sydney, an arrangement
with creditors to continue trading, and calling in
receivers or an administrator.  Company spokesman Peter
Mahon said a deal was a step closer after discussions
yesterday.

The Housing Industry Association said home buyers were
covered by the industry's warranty system, ensuring
building was completed. But if the company goes bankrupt,
sub-contractors could struggle for payments.  Customers
burdened with delays fear a further blow-out in
construction schedules will push them into the GST period
and lift costs by up to $5000.

Avonwood's Hoppers Crossing and Hallam offices were locked
on Thursday amid claims staff safety was at risk.  Home
buyer Patrick Schembri, a spokesman for about 200
customers, called for calm yesterday.  He has been flooded
with calls from Avonwood clients forced to rent
accommodation or to move in with relatives because of
building delays. (The Herald Sun  22-April-2000)

COCA COLA AMATIL: $400M wiped from value
----------------------------------------
Investors wiped more than $400 million off the value of
Coca-Cola Amatil yesterday as they reacted negatively to
prospects for a quick turnaround in the group's troublesome
Philippines market, coupled with sluggish sales in the
local market.

Amatil shares closed down 43cents at $3.81 as they shed
much of their recent gains on hopes that perhaps the group
was through the worst of its recent woes.

"Wednesday's annual meeting gave a liberal serve of sharp
sound bites, which was not considered adequate to
compensate for the recent bad news," said Adrian
Richardson, the head of BT Funds management's global
consumer sector.  "They gave enormous information on
peripheral data, but nothing about when earnings will
revive."

At Wednesday's annual meeting, shareholders were told that
problems with the group's Asian operations, specifically
the Philippines, would continue to weigh on the company's
performance well into next year.

"The company bet the farm on the Philippines, and there is
a correlation with the Philippines falling apart linked
with Amatil's ownership of the asset," one analyst said.
"San Miguel Corp were astute sellers of the Philippine
business, and Amatil was on the other side of the equation.
The Philippine problem is structural, not cyclical."

Analysts said shareholders were looking for directors to
articulate a detailed action plan to get the Philippines
back on track, but that was not forthcoming at the meeting.
Rather, they were given a broad reassurance that in time
the problems would be solved, without being given details
to assure shareholders of a recovery.

Also likely to weigh on Amatil's share price was that it
still traded at a premium to the broader market, analysts
said, at a time when change within the soft drinks business
meant that the company may be poised to suffer from
sluggish growth for some years.

Much of the growth in the drinks industry continues to be
in so-called "new age" drink sectors, along with sports
drinks and waters, especially mineral water areas, where
Coca-Cola has only a limited market exposure.

Broker Ord Minnett said it had revised downwards by 13 per
cent its earnings estimates for Amatil on the basis of the
bearish comments made by directors at yesterday's meeting.
Ords is now forecasting a pre-abnormal profit of $153
million for 2000, well down from the $189million profit
posted in 1999, with no prospects for improvement for next
year.

"This results in a revised EVA valuation of $3.95," the
broker said in a research note to clients. "Consequently,
we have retained our sell recommendation." (The Age  21-
April-2000)

MUSEUM OF CONTEMPORARY ART: Open, empty; fundless in 2 mos.
-----------------------------------------------------------
The Museum of Contemporary Art will run out of money in two
months if it does not arrange more funding.

The MCA has been pushing for extra funding and it was
revealed yesterday that a full board meeting would be
briefed on "highly confidential" discussions on Wednesday.  
Museum director Elizabeth Ann Macgregor was upbeat
yesterday, telling The Daily Telegraph: "There will be a
deal in place before we run out of money."

She declined to comment on the suggestion that the museum
only had two months to operate, but said negotiations were
at an extremely sensitive stage.

"I'm confident and feeling quite good about the whole
thing," she said. "There will be not be a voluntary
administrator, I will stake my life on it. We will be
getting a deal in place as soon as possible, but I can't
say any more about it. We have always said that without a
new deal, we can't survive."

The Scottish-born director said there was no risk for the
museum's 40 full-time staff.  The museum's finance
committee, chaired by University of Sydney deputy vice-
chancellor Ken Eltis, met on Wednesday.  The results of its
deliberations are not known and Prof Eltis refused to
comment yesterday.

This is not the first time the museum has waded into
financial trouble it needed a $250,000 cash injection from
sponsor American Express and $750,000 from the State
Government at the end of last year to stay afloat.

There are now four apparent suitors for the organisation.
Edmund Capon's Art Gallery of NSW, which is interested in
taking over management of the museum with a State
Government cash injection. The gallery is refusing to
publicly comment on the issue.  The Sydney Harbour
Foreshore Authority, which is investigating propping up the
museum, possibly to the tune of more than $1 million a year
in return for taking control of the prime harbourside
asset.

Sydney Lord Mayor Frank Sartor, who wants to see a
combination of State and council money to help the museum
in a $60 million rescue package, along with a major
expansion of the building, to retain a cultural precinct at
West Circular Quay.

The University of Sydney, which holds a 39-year lease on
the former MSB headquarters building from the Government,
and is also owed at least $2 million in loans.  A
university spokeswoman confirmed that a submission was put
before the Government this week, but could not comment
further.

About 230,000 people visited last year an average of about
1580 a day.  Mr Sartor believes he can more than double
this visitation figure. (The Daily Telegraph  22-April-
2000)

REINSUR.AUSTRALIA CORP.: Board changes after losses
---------------------------------------------------
Reinsurance Australia Corporation has drafted a turnaround
expert to its board to help its recovery after reporting a
$467 million net loss last year.

The besieged insurer has made two fresh board appointments,
including career investment banker Richard Hill.  It is
believed Mr Hill was introduced to the board by 11 per cent
shareholder Hunter Hall Investment Management, whose
corporate consultant, Jack Lowenstein, will also join the
board.

Mr Hill is a founding partner of Hill Young Associates, has
worked with the HSBC subsidiary Wardley in Hong Kong and
New York and is an expert in corporate workouts.  Mr Hill
and Mr Lowenstein will both fill casual positions but their
election will not be voted on at what is expected to be a
fiery annual meeting on May 15.

In a notice of meeting released this week, ReAC said Nick
Steffey, its managing director, and Stephen Matthews, a
fresh nominee, would come up for election.  But the notice
warned Reinsurance Australia could be in breach of its
employment contract with Mr Steffey, who has been with the
group for less than one year but has already been paid a
total of $1.01 million in salary and benefits.

Reinsurance is embarking on a self-managed run-off of its
reinsurance contracts expected to take three to four years.
This involves settling obligations to policy holders, in
some cases settling contracts early through a process known
as commutation. ReAC also said it had been in close contact
with the regulator, the Australian Prudential Regulation
Authority, which has warned it could install an inspector
into the company. (The Age  21-April-2000)

VIDEO EZY: ACCC's video tiff set for courts
-------------------------------------------
A bitter dispute between the Australian Competition and
Consumer Commission and video-hire company Video Ezy is set
to become the first GST row to be settled in court.

Talks between the parties broke down yesterday with the
ACCC demanding that Video Ezy rollback its prices and pay
compensation, while the company vowed to clear its name
after the ACCC alleged it had blamed the GST for a 15 per
cent price rise on overnight video hire from $6 to $7.

Video Ezy last night said the ACCC was trying to make it a
"scapegoat" to prove its effectiveness as a consumer
watchdog, while the commission said the company's offer of
mediation to solve the dispute was a "public-relations
spin".

ACCC chairman Professor Allan Fels said the matter would go
to court and the ACCC was seeking a rollback of the price,
compensation for customers and a penalty. The company could
face a fine of up to $10 million and individual executives
could be fined up to $500,000 each.

Video Ezy managing director Robert Maidment said the
company's offer for mediation was rejected by the ACCC,
leaving no alternative to expensive court action for
taxpayers. He said the company strongly denied the claim
that it was seeking to profiteer from the GST and
maintained that $7 was a fair and reasonable price for
overnight hire of a new release video.

"The company will fight to protect its reputation but was
hoping to save taxpayer money by doing so through
mediation," Mr Maidment said.

He said the allegations against 22 corporate-owned stores
was also affecting 423 small business franchisees who had
not increased prices but were receiving threats from
customers and losing business. He added that the ACCC had
waged a "reckless media campaign" based on alleged comments
by 16-year-old staff, and was trying to "stifle the natural
market forces in a very competitive industry. It appears
that the ACCC is determined to try to use Video Ezy as a
scapegoat to prove the effectiveness of its consumer
protection role," he said.

"Suggestions by Video Ezy for mediation is a public
relations spin, since they have no intention in negotiating
with the commission on its key demand for a rollback in
price," Professor Fels said.  "The investigations on this
matter are not just based on what has been said by some
sales attendants, which is the impression Video Ezy has
been trying to give.

"The commission has done an in-depth, two-month internal
investigation of Video Ezy, and in our view there is
damning documentary evidence that they have anticipated
unlawfully the GST in their prices and we are now getting
ready to litigate on that point." (The Age  21-April-2000)


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

AGRICULT.BANK OF CHINA: Gov't sets up debt-clearing co.
BANK OF CHINA: Gov't sets up debt-clearing co.
CHINA CONSTRUCTION BANK: Gov't sets up debt-clearing co.
INDUS.& COMM.BANK OF CHINA: Gov't sets up debt-clearing co.
-----------------------------------------------------------
Beijing has set up four debt-clearing companies to tackle
mounting bad loans of the state banks - Bank of China,
Industrial and Commercial Bank of China, China Construction
Bank and the Agricultural Bank of China.

The debt-clearing firms - Cinda, Orient, Great Wall and
Huarong - have moved to swap debts for equity in state
firms to recover loans and cut the debt burdens of state
firms.

The four state banks have mountains of bad debts on their
books. Beijing has said the ratio of non-performing loans
at the four amounts to 25 per cent of their total loans,
but foreign analysts believe the level to be 30 per cent to
40 per cent.  The internationally accepted level is less
than 5 per cent, analysts say.

The need for financial and banking reforms has taken on
renewed urgency following the Asian financial crisis.
Although shielded from the crisis because the yuan is not
convertible, Beijing was prompted by the turmoil to
accelerate its push to reform the financial and banking
sectors.  Beijing's expected World Trade Organisation entry
later this year will also give rise to growing foreign
competition domestically.

Premier Zhu Rongji has reaffirmed a vow to deepen the
mainland's financial reforms to help ward off financial
risks, according to official media.

"It's still an important and urgent task to continue to
deepen financial reform and rectification to effectively
dissolve financial risks," the Financial News quoted Mr Zhu
as saying.

He said reforms of state banks must go ahead to help
maintain stability. "Reforms of state banks must be pushed
forward to maintain our country's financial security and
promote the healthy development of the financial industry,"
Zhu added.

Meanwhile, Mr Zhu said the rectification and supervision of
smaller financial institutions should be strengthened.

These must "establish modern financial systems, improve
management and enhance their capacity to withstand risks",
Mr Zhu said.

He urged municipal governments to intensify a crackdown on
financial irregularities and crimes, such as illegal fund-
raising activities and official corruption.

Mr Zhu also called on them to "protect the legitimate
interests of creditors."  (South China Morning Post  22-
April-2000)

CHAI NA TA CORP.: Creditors approve restructuring
-------------------------------------------------
Chai-Na-Ta creditors approve restructuring Chai-Na-Ta Corp.
of Langley, B.C., says its general and secured creditors
have approved its restructuring plan.

The ginseng company filed for Companies' Creditors
Arrangement Act protection in order to restructure its
financial affairs. Its principal lenders include
HSBC Bank Canada, John Hancock Mutual Life Insurance Co.,
HSBC Private Equity Fund and its debenture holders. Chai-
Na-Ta said the plan will reduce its debt by about $22-
million, and give Hong Kong's Road King Infrastructure Ltd.
a stake in the company of more than 50 per cent on an
undiluted basis.  (The Globe and Mail  21-April-2000)

SIU FUNG CERAMICS: Final curtain looms in saga
----------------------------------------------
Debt-ridden Siu-Fung Ceramics is in preliminary discussions
with other potential buyers after garment tycoon Charles
Yeung Chun-kam withdrew his rescue plan for the company.

Should the new negotiations fail, Siu-Fung might be forced
into liquidation, the company said.  Investors were warned
to exercise extreme caution in dealing in the company's
shares, which have dropped 73 per cent in a month.
Siu-Fung shares have sunk from 14.9 cents on March 27 to
3.9 cents at the close on Thursday, on concerns over the
collapse of the rescue plan.

Glory Score, owned by Mr Yeung, informed Siu-Fung in a
letter on Wednesday that it was withdrawing the rescue
proposal it put forward last July. Glory Score said it had
decided to withdraw the rescue bid because it had not yet
received unanimous agreement from creditors for its debt-
restructuring proposal.  It also believed it would not
receive agreement from all creditors in the near future, so
it had decided to drop the plan.

Mr Yeung's decision to withdraw the rescue plan leaves Siu-
Fung at risk of liquidation, as a wind-up petition filed by
the company's largest creditor, HSBC, will be reopened for
proceedings next month.  HSBC filed the wind-up petition
against Siu-Fung last year, but the proceedings were
adjourned after Mr Yeung's rescue plan emerged.

Under the proposed debt restructuring plan presented by Mr
Yeung's company last July, Glory Score would have acquired
the company's HK$2.4 billion debt from Siu-Fung's creditors
for a total of HK$70 million in cash.  That meant almost 97
per cent of Siu-Fung's debts would have been waived.

Speaking after a shareholder's meeting on Tuesday, Siu-Fung
chairman Siegfried Lee Siu-fung said one creditor bank,
Sanwa Bank (Shenzhen Branch), had opposed Mr Yeung's rescue
proposal.  Sanwa had about 1.5 per cent of the company's
HK$2.4 billion debts, he said.

The plan had won in-principle agreement from many of the
company's 17 creditor banks, including the largest
creditors HSBC and Hang Seng Bank.  Mr Yeung's proposal is
the second restructuring plan to fail. In 1998, the former
Kumagai Gumi (Hong Kong) withdrew a rescue bid due to the
deteriorating net asset value of the company. (South China
Morning Post  22-April-2000)


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

PT ASTRA OTOPARTS: Reports restructure progress to JSE
------------------------------------------------------
PT Astra Otoparts Tbk reports to the Jakarta Stock Exchange
on its restructuring progress that:
1. The limit time in the news of the finishing of debt
restructuring process of Astra Otoparts actually is the
company's target reminding there are many other factors
which influence the successful of finishing the process. As
the company which has been executing the restructuring
process immediately.

2. The company proposed to creditors to reschedule the
company's debt within 5 years. A hundred percent total of
debt is hoped to be restructured, and is still in the
negotiating phase. The creditors consist of a syndication,
with Japan banks majority.

3. So far, the negotiation process between company and
creditor is going through smoothly and is gaining a
positive response from creditors.  Recently, there is no
event nor other important material information which should
be informed by company. (Jakarta Stock Exchange  19-April-
2000)

PT BANK DANAMON: Among 20 IBRA wants to merge
PT BANK NIAGA: Among 20 IBRA wants to merge
PT BANK UNIVERSAL: Among 20 IBRA wants to merge
-----------------------------------------------
Indonesia's government, keen to recoup US$86 billion
(S$146.2 billion) it spent rebuilding the country's banking
system, wants to speed up the merger or sale of 20 banks it
controls.

To pull this off, the agency in charge of the effort plans
to turn the 20 banks it controls -- including PT Bank
Niaga, PT Bank Universal and PT Bank Danamon -- into four
or five institutions with more capital and stronger
management, dressing them up for sale to strong foreign
investors.

"I will come back to the market with the blueprint of the
banking landscape in a very short while," said Jerry Ng,
deputy chairman of the Indonesian Bank Restructuring Agency
(Ibra), the government body leading the banking industry's
revival.

Ibra is spending about US$90 billion to fix its banking
industry, and wants to sell the institutions off to
revitalise domestic lending and retrieve some of the money
the heavily-indebted government laid out for the
recapitalisation programme.

Jakarta is keen to keep its promise to the International
Monetary Fund (IMF) to get the restructuring of its banking
and corporate sector on track. Otherwise, funding from the
body could dry up.

Ibra is pushing ahead with a merger of eight banks into PT
Bank Danamon, Indonesia's biggest publicly-
traded bank by market capitalisation. Once merged, its
assets will more than double to 62.6 trillion rupiah
(S$13.3 billion), of which 30 trillion rupiah will be in
government recapitalisation bonds. The merger will be
completed on June 1, although the banks' operations won't
be merged until September.

After that, Ibra will have 12 banks under its control. Mr
Ng wants those to be merged into as few as four banks with
capital adequacy ratios of more than 12 per cent. Then they
can be packaged for sale.

Ibra officials and outside analysts agree that although
many foreign banks are anxious to be a part of the
country's new banking landscape, they won't likely sit down
to negotiate until they see details and feel confident that
Mr Ng's blueprint won't change. "There have been a lot of
false starts so far," said Tejinder Sandhu, Jakarta-based
head of research at HSBC Securities.  (Bloomberg, (The
Business Times  22-April-2000)

PT NEWMONT MINAHASA: Tax dispute settled
----------------------------------------
The month-long tax dispute pitting gold mining company PT
Newmont Minahasa Raya against a local government in North
Sulawesi ended on Wednesday as both parties finally agreed
on an out-of-court settlement.

Director general for general mining at the Ministry of
Mines and Energy Surna Tjahja Djajadiningrat said Newmont
agreed to pay US$ 500,000 in overdue taxes plus some
"compensations" to the Minahasa regency administration,
while the regency would drop its lawsuit against the
subsidiary of American mining firm Newmont Mining
Corporation.

The amount was much smaller than the Rp19 billion ($ 2.4
million) in overdue taxes on the building materials from
1995 to 1998, demanded by the company in its lawsuit.

"The regency will drop its lawsuit, Newmont's contract will
be honored and both have made compromises on the disputed
tax payment," Surna said.

The regency filed a lawsuit against Newmont last year in
the Tondano District Court on charges that the company
failed to meet its obligation of paying tax on overburden.
Newmont refused to pay the taxes, saying the taxes were not
included in its contract of work it signed with the
Indonesian government in 1986.

Surna maintained that under the tax regulation and
contract, Newmont was actually not obliged to pay taxes on
the used overburden. But, under the Wednesday agreement,
Newmont was ready to pay taxes on the building materials
extracted from its overburden which it had used to build a
public road from a port to its gold mine at the Ratatotok
village.

"This is a bit strange. Actually, Newmont built the road
for the regency. Still, the regency taxed the company for
that," he said.

He said Newmont would further contribute $ 1.5 million to
establish a foundation to promote the welfare of the local
people, which will be jointly the regency, the company and
the representatives of the local people. The company, he
said, would also spend an additional $ 1 million per year
for a period of three years for community development
programmes.

"The money will be managed by Newmont, but the regency will
develop the programmes," Surna said.  (Asia Pulse  20-
April-2000)


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

DAIWA SECURITIES GROUP INC.: To cover pension gap in FY99
NIKKO SECURITIES CO.: To cover pension gap in FY99
NOMURA SECURITIES CO.: To cover pension gap in FY99
---------------------------------------------------------
The three major securities companies will dispose of all
the shortfalls in their pension/retirement benefit-related
reserves in the year ended March, The Nihon Keizai Shimbun
learned Thursday.

Nomura Securities Co. (8604), Daiwa Securities Group Inc.
(8601) and Nikko Securities Co. (8603) will cover a
combined 100 billion yen in unfunded obligations. The move
comes ahead of the adoption of new accounting standards
this fiscal year requiring disclosure of pension and
retirement allowance liabilities.  

If such liabilities remain undisclosed, the stock prices of
the brokerages could suffer, an industry observer said.
The three firms are at the final stages of calculating
their liabilities. Including liabilities at the industry's
employee pension fund, Nomura will have to dispose of
liabilities of up to about 40 billion yen and Daiwa
Securities group is expected to cover about 30 billion yen.
Nikko is likely to set aside reserves to cover just over 30
billion yen in liabilities. The liability coverage will be
posted as extraordinary losses.

The brokerages say the disposals should complete coverage
of their unfunded obligations. Active stock trading in
fiscal 1999 is set to push up profits to the highest level
since the collapse of the bubble economy in fiscal 1991.
The high profits will enable the brokerages to cover their
liabilities and increase dividends, industry observers
said. (Nikkei  21-April-2000)

HIKARI TSUSHIN: `Last chance' to dispel fear
--------------------------------------------
The head of troubled Internet investor Hikari Tsushin is
set to meet the media next week in what analysts see as
possibly his last chance to put a halt to a tailspin in the
share price.

Hikari's stock price has tumbled 91 per cent in the last
two months amid a barrage of negative news, including an
unexpected profit warning and magazine articles painting a
negative picture of its business practices.  It is
scheduled to announce its earnings results at a news
conference on Monday.

Yasumitsu Shigeta, the 35-year-old president who helped
Hikari to become one of the 10 largest Japanese companies
by market capitalisation by last December, is expected to
address his future business strategy in a bid to turn the
tide.

"This could be something very close to their last chance,"
said Mariko Watanabe, an analyst at Dresdner Kleinwort
Benson.  "It could provide a cue for a turnaround, but it
could also do little to help. It all depends on what comes
out of the meeting."

Hikari finished Friday down 2,000 yen or 8.4 per cent at
21,800 yen, falling by its daily limit for a 15th straight
session. Its market capitalisation now placed down to
around the 100th slot.  Analysts said what Hikari Tsushin
needs to deliver, and what investors are dying to know, is
a clear business plan on how it will improve its shaky
profitability.

Hikari, also a major mobile phone subscription agent, said
last month it was likely to post an operating loss of 13
billion yen (HK$959.4 million) for the half-year to
February 2000, down sharply from its earlier forecast of a
6 billion yen profit. For the full-year to last August,
Hikari reported a net profit of 9.9 billion yen, up 95.7
per cent.  Hikari has said its operating profits would
return to the black in the half-year to August, but did not
elaborate.

"People want to know how it's possible to post a profit in
the current half-year after a massive loss in the previous
one. They want to know what plans Hikari has to rebuild its
business," said Motoharu Sone, an analyst at Tsubasa
Securities.  "If (Shigeta) can't give proper answers, a
bottomless fall awaits Hikari shares."

Hikari last week complained to the securities market
watchdog about what it called groundless rumours that it
was in trouble.  Hikari Tsushin now needed to make crystal
clear that it was doing its best to improve its risk
management and disclosure standards to win back investor
confidence, analysts said.  Some pundits say, however, it
takes more than just a news conference to regain investor
confidence, and considering the serious problems
surrounding Hikari, it may never recoup its former glory as
a leader in Japan's Internet revolution.

Meanwhile, Yoshitaka Kitao, chief financial officer of
major Internet investor Softbank Corp, said yesterday Mr
Shigeta had decided to resign from Softbank's board. Hikari
was not immediately available for comments. Earlier this
year, Mr Kitao launched a blistering tirade against Mr
Shigeta, calling him a copycat. (Hong Kong Standard  22-
April-2000)

ICHIDA & CO.: To put head office up for sale
MARUSHO & CO.: To put head office up for sale
TACHIKAWA & CO.: To put head office up for sale
-----------------------------------------------
Struggling kimono wholesalers are putting their head
offices up for sale. The appearance of old kimono wholesale
areas, like Tokyo's Nihombashi and Kyoto's Muromachi, is
being transformed as a result of sluggish demand for
kimonos.

In Nihombashi, one of the kimono industry's centers, Ichida
& Co. (8019), Marusho & Co. (8105) and Tachikawa Co. have
all decided to dispose of their properties.  

Ichida has sold its former headquarters, a 1,480 sq. meter
plot of land in Nihombashi-Horidomecho, to Marubeni Corp.
(8002) for 1.81 billion yen. The market value of the
property was 1.6 billion yen higher than its original
purchase price, funds which the kimono house used to offset
negative group net worth. Ichida has relocated its main
office to Nihombashi-Hamacho, while Marubeni plans to build
a condominium on the site of its acquisition.

Marusho sold its Horidomecho head office to a real estate
agency for 1.7 billion yen in March. But under a six-month
lease its headquarters will remain in offices there, after
which time a condominium will be built on the plot.

Tachikawa, which decided to liquidate itself last year,
plans to dispose of its headquarters in Nihombashi-
Odenmacho.

In Muromachi, Kyoto, Yamanaka Co. a kimono accessories
maker-wholesaler sold its 1,000 sq. meter lot to Orix Real
Estate Corp. in February. A plot of land where a bankrupt
kimono wholesaler used to have their head office will also
be turned into a residential site.

According to the latest statistics released by the Ministry
of International Trade and Industry, the number of kimono
and other garment outlets in 1997 fell 11.9% to 22,678 from
1994, when the previous statistics were compiled. Sales
slumped 13.4% to about 1.4 trillion yen. (Nikkei  21-April-
2000)

IKEDA BUSSAN CO.: To shut down Aichi plant
------------------------------------------
Ikeda Bussan Co. (7285), a manufacturer of auto seats
affiliated with Nissan Motor Co. (7201), plans to close its
plant in Aichi Prefecture in March 2001, The Nihon Keizai
Shimbun learned Thursday.

All the seats produced at the factory are currently
supplied to Aichi Machine Industry Co.'s (7263) plant
located nearby. The seats are used in the Serena sport
utility vehicle and other cars. The Aichi Machine plant
will close its own in March 2001 as part of Nissan's
sweeping restructuring plan.

The 70 workers from the Ikeda Bussan plant will be
transferred to a factory in Tochigi Prefecture. The
production of the Serena and other models is switching to
Nissan's Tochigi plant.  Nissan has a 37.9% stake in Ikeda
Bussan, which is almost totally dependent on Nissan for
business.

Major autoparts maker NHK Spring Co. bought a stake in
Ikeda Bussan in 1999 when the two companies tied up in the
auto seat business. Ikeda Bussan hopes the tie-up will help
it improve production efficiency. (Nikkei  21-April-2000)

LEC TOKYO LEGAL MIND: Software trio jointly sue
-----------------------------------------------
Microsoft said yesterday it was leading two other US
software makers in filing a 114-million-yen (US$1.1
million) copyright damages suit against a Japanese
educational firm.

Microsoft, Apple Computer and Adobe Systems alleged that
the firm, LEC Tokyo Legal Mind, had illegally copied their
software for use in its crammer colleges, lawyers for the
three firms said in a statement.

"The plaintiffs are demanding the elimination of such
illegal copies and indemnification for damages pursuant to
the Copyright Law," it said.

They were seeking "claims for copyright infringement
damages of 114 million yen," it said.  "The complaint also
alleges that the illegally copied software included a
network protection feature, which is one method used to
prevent unauthorized copying."  

It said an employee of LEC Tokyo Legal Mind had revealed
the copyright fraud in a call to a telephone hotline run by
the Business Software Alliance, which operates in 65
countries to protect intellectual property rights. The
educational company, which runs 28 colleges in Japan
providing crammer classes for bar, civil-service and other
examinations, said it would fight the case.

"All the software we use was obtained with official
permission of usage," said company spokeswoman Akiko
Sakamoto. "Of course, we are planning to fight [the suit]."   
(Business Day  21-April-2000)


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

ASIAN BANKING CORP.: Swiss banking group to take over
-----------------------------------------------------
A Swiss consortium will take a controlling stake in debt-
laden South Korean merchant bank Asian Banking Corp (ABC)
to develop it into a major holding company, ABC said
yesterday.

The consortium formed by five major Swiss banks acquired
the controlling 28.62 percent shareholding in ABC from
Taihan Textile, an ABC spokesman said.  The price tag for
the 8.6 million shares was only US$10, according to Yonhap
News Agency.

ABC is the first South Korean merchant bank to attract
foreign investment since the country fell into a severe
economic crisis in 1997. It also marks the first time that
Swiss banks have invested in Korea. (Business Day  21-
April-2000)

SAMSUNG MOTORS: Creditors, Renault close to a deal
--------------------------------------------------
Domestic creditors of Samsung Motors and Renault are likely
to strike a deal by this weekend on the sale of the ailing
carmaker, said Samsung's main creditor Hanvit Bank
yesterday.

The two sides were engaged in last-minute talks in Paris to
finalize a pact by Friday, when Renault's exclusive
negotiating rights are to expire. "The probability is high
that the two sides cap a deal," said a bank official.

"Creditors demanded $600 million for Samsung Motors, but
Renault refused. They decided to renew talks on Friday," he
said. "But we are confident of positive results in the
Friday talks because both sides are ready to make a
compromise."

Creditors plan to request another extension in exclusive
talks if the Paris meeting produces no results. (The Korea
Herald  22-April-2000)

SAMSUNG MOTORS: Creditors accept loss-sharing deal
--------------------------------------------------
South Korean creditor banks have agreed to share part of
Samsung Motors debt to a sister firm in a bid to expedite
the auto company's sale to France's Renault, bank officials
said yesterday.

The decision came at a meeting of main creditor banks,
which agreed to accept a court proposal that they should
share the debt Samsung Motors owed to Samsung Corp.
South Korean negotiators and Renault are to resume talks
yesterday in Paris on Samsung Motors' sale, which had hit a
snag after Renault belatedly discovered Samsung Motors owed
291 billion won (US$260 million) to Samsung Corp.

Creditors and Renault could not agree who would be
responsible for the debt.  But Samsung Corp, the trading
arm of South Korea's second largest Samsung conglomerate,
agreed on Tuesday to receive 30 percent of the price
offered by Renault to settle the debt, with the remaining
70 percent going to the creditor banks.

Bank officials declined to give the sale price, but the
Korea Economic Daily said Renault would buy Samsung Motors
for $540 million to $550 million, paying $100 million in
cash. The daily said Renault was ready to assume Samsung
Motors' debt of $200 million and pay $200 million over the
next 10 years in an earn-out mechanism, using 10 to 15
percent of annual profits.

The French auto maker hopes to set up a new company with a
capital of $335 million, it said.  Renault plans to hold 70
percent of the new company, creditors 10 percent after
converting some debts into equity and Samsung Motors would
about 20 percent, the daily said.

Renault's goal is to secure at least 10 percent of South
Korea's auto market by using the Samsung (SM) brand name
for five years, it said. (Business Day  21-April-2000)


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

EDARAN OTOMOBIL NASIONAL: DRB-Hicom upbeat on Petronas deal
-----------------------------------------------------------
DRB-Hicom group is still hopeful of transferring the entire
Malaysian car project to national oil company Petroliam
Nasional (Petronas) despite their divergent positions over
the pricing of a key deal.

DRB-Hicom chairman Saleh Sulong said Hicom and Petronas
have not agreed on the price for the sale of its 32 per
cent stake in car distributor Edaran Otomobil Nasional
(EON) to national car maker Perusahaan Otomobil Nasional
(Proton). Petronas recently agreed to buy a 27.2 per cent
stake in Proton from Hicom for RM1 billion (S$446 million),
or RM7 per share. "We are flexible and reasonable."

Mr Saleh disclosed that Proton, which will come under the
control of Petronas before August, has offered RM11 for
each EON share. The current market price is RM13.20. At
RM11, the 32 per cent stake in EON is worth almost RM802
million.

Analysts estimate the break-up value of EON, which also
owns a bank with the same name, to be closer to RM20 per
share.  Despite market suspicion that Petronas was not keen
on EON, Mr Saleh said it was Petronas that had insisted on
buying Proton and EON from Hicom as a total package.

Analysts said the deal, which has dragged for more than a
year, will be smoother when Petronas takes over control of
Proton. This is because Petronas directors would then be
able to outvote Mitsubishi Motors Corp, which does not want
Proton to pay more than RM11 for the EON stake. Mitsubishi,
which owns 16 per cent of Proton, has been its partner
since the automaker's inception in 1985.

Mr Saleh has been going on a roadshow to convince investors
that there would not be a vacuum in DRB-Hicom following the
sale of the national car project to Petronas.  Its
remaining businesses are: Automotive. Instead of the
national car, it will now concentrate on building the
national truck and motorcycle. The segment is expected to
account for almost 45 per cent of its bottom line; Property
and construction, which will make up over 30 per cent of
group profits.

It is involved in a segment of the rail project from
Singapore to Kunming in China. An analyst said the segment
between Ipoh in Perak and Rawang in Selangor would cost
more than RM2 billion; Services like waste management and
vehicle inspection.  And to enhance cash flow and improve
its efficiency, all firms will now be housed under DRB-
Hicom. Entities like Gadek and Hicom would be delisted from
the Malaysian bourse.

Mr Saleh was upbeat on the diversified group's prospects
despite the withdrawal from the national car project. "It's
a misconception that DRB-Hicom is all about Proton. The
diversified yet focused group is like Malaysia Inc," he
noted. (The Business Times  22-April-2000)

EDEN ENTERPRISES: New shareholders after restructuring
------------------------------------------------------
Eden Enterprises (M) Bhd has proposed a restructuring
exercise involving a capital reconstruction and fund
raising exercise, a rationalisation exercise and a
restricted offer for sale of shares and loan stocks.

It is also making a series of acquisitions totalling
RM237.24 million to be settled by the issuance of shares
and loan stocks. Upon the completion of the asset
injections and restructuring exercise, a new set of
controlling shareholders will emerge.  They are Serata Padu
Sdn Bhd, Zil Enterprise Sdn Bhd, Datuk Abdul Rahim Mohamed,
Lew Min Fatt and Ting Kam Cheong.

The asset injection will see Eden acquiring independent
power producer Stratavest Sdn Bhd for RM133.11 million,
537.79 acres of Gebeng Industrial Land for RM93.7 million
and 70 per cent of Time Era Sdn Bhd, an electrical
components manufacturer, for RM10.43 million.

Stratavest will be acquired from Serata Padu while Gebeng
Industrial Land will be acquired from Zil Enterprise and
Time Era from Lew and Ting. Abdul Rahim is linked to Zil
Enterprise.

In its statement to the KLSE, Eden has proposed to reduce
and reconstruct its existing paid-up share capital
comprising 39.99 million shares of RM1 each to 31.99
million ordinary shares of RM1 by cancelling 20 sen off
every existing share and consolidating them into new shares
of RM1 each.

The Penang-based restaurant operator said the exercise
would raise proceeds of RM13.5 million that would be set
off against the group's accumulated losses of RM27.9
million. The reconstruction would also enhance Eden's net
tangible asset (NTA) per share position to 52 sen from 41
sen.

Eden has also proposed a two-for-one rights issue of 64
million new shares after the reconstruction exercise,
together with 16 million free new warrants on the basis of
one free warrant for every four new rights issue shares
subscribed.

Eden's substantial shareholder Sriwani Holdings Bhd will
renounce its entire rights issue of about 34.44 million
shares to Zil Enterprise or Abdul Rahim.  The restructuring
exercise will also see a restricted offer for sale of 15.70
million shares by Serata Padu and 6.40 million loan stocks
by Zil Enterprise to the minority shareholders of Eden.

The new controlling shareholders will also apply to the
Securities Commission for an exemption from having to make
a mandatory general offer. Eden has also proposed to
transfer its listing to the Main Board of the KLSE. (The
Edge  20-April-2000)

PARK MAY BHD: Gets SC nod for debt restructuring exercise
---------------------------------------------------------
Park May Bhd has received approval from the Securities
Commission (SC) on its proposed capital reduction and
consolidation and debt restructuring exercise involving the
issue of bonds and loan stocks but on revised terms.

In a statement to the Kuala Lumpur Stock Exchange, the
company said the SC has set the condition that the
conversion price of its redeemable convertible secured
bonds (RCBs) and ICULS must be higher than a price which is
not more than 10 per cent discount from the price to be
calculated. The price will be based on a five-day weighted
average price preceding the price fixing date.

The SC's approval is also conditional upon full disclosure
of the terms and conditions of the call and put option
agreement to be entered into between the financial
institutions and Park May's holding company, Renong Bhd.
Park May says the company's directors are considering the
SC's conditions on the conversion price of its RCBs and
ICULS.

Park May has proposed that its paid-up capital be reduced
from RM45 million comprising 45 million ordinary RM1 shares
to RM36 million, thereby shaving off 20 sen a share. The
company had also proposed that it convert its RM152.7
million debt to the five financial institutions into new
ordinary shares and RCBs. Parkway had also proposed a debt
conversion of 20.49 million owing to unsecured main
suppliers into ICULS. (The Edge  21-April-2000)

TIME ENGINEERING: SingTel looking for purchase bargain
------------------------------------------------------
Singapore Telecommunications (SingTel) is trying to buy a
stake in Malaysia's Time Engineering's telecoms business at
the lowest price it can following a fall in Time's share
price this week.

Analysts said that while SingTel does not want to
jeopardise the deal, which would give it a long-sought-
after foothold in Malaysia's rapidly growing Internet
market, it was trying to make the most of the recent dip in
Time stock.  Time said on Thursday that the price
Singapore's largest telecoms company would pay for a 14.5
per cent stake was not negotiable. SingTel had said it
would pay M$649 million (about HK$2.46 billion) or M$6 per
share.

"There are no negotiations on Time's price but we are still
talking on the price for Time dotCom," Halim Saad,
executive chairman of Time's parent Renong said.

Time, which has one of Malaysia's largest fibre-optic
networks, has disputed market speculation a recent decline
in its share price could pose a problem for the SingTel
deal.  Conglomerate Renong, which owns a 47 per cent stake
in Time, announced on April 7 that it would sell the stake,
while Time would sell 20 per cent stakes each in its
telecoms holding company Time dotCom, and an Internet
service provider.

The total deal is estimated to be worth M$2.2 billion and
is an integral part of Time's overall plan to restructure
M$4.8 billion worth of debts.

"SingTel definitely wants the stake at the best price
possible, but Renong is arguing that Time is worth more
than that," a telecoms analyst said.

After being beaten out by Internet start-up Pacific Century
CyberWorks (PCCW) for a proposed stake in Cable & Wireless
HKT, SingTel needs to finalise a regional tie-up to stave
off criticisms of slow expansion even as it faces a more
liberalised home market.

SingTel chief Lee Hsien Yang declined to comment on growing
speculation it might revive a bid for Cable & Wireless,
following the rout in technology stocks worldwide earlier
this month.  Shares of PCCW have fallen about 40 per cent
since it announced the planned Cable & Wireless deal,
leading analysts to think the tie-up could unravel,
possibly leaving the door open for SingTel.

If that happens, SingTel may lose its appetite for Time,
which appears not to be budging from its original proposal
despite the fall in its share price.  Officials at SingTel
and Time could not be reached for comment yesterday.

"Since the agreement is not a legally binding document, the
deal can still fall through," KAF Seagroatt and Cambell
Research said in a report. (South China Morning Post  22-
April-2000)


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

ANSCOR: Losses soar 176% in 1999
--------------------------------
Holding firm A. Soriano Corp. (Anscor) suffered for the
second straight year as its losses ballooned 176 percent
from P126.6 million in 1998 to P350 million last year.

However, Anscor chairman and chief executive officer Andres
Soriano III said the past year was a period of transition,
"one which saw the realignment and refocusing of Anscor's
portfolio with the disposal of investments, the repayment
of borrowings and the resolution of controlling stockholder
issues."

He said while the activities of Anscor's subsidiaries and
affiliates generated a net profit of P306 million, the
additional provisions made to cover the potential decline
in their investments and the P75-million loss on their
equity contributions in port operator International
Container Terminal Services Inc. (ICTSI), a 22-percent
owned affiliate.

Soriano told reporters after the company's stockholders
meeting yesterday that they are exploring for the best
formula in maximizing value for its various investments and
adjusting to keep the company in tune with the emerging
trend toward the "new economy."

"This is a period of looking at opportunities, we may have
to pare down some more to focus on our core businesses,
invest or consolidate... there are certain investments
which are nice to see more of but then again, its a hard
one to call."

Aside from ICTSI, Anscor subsidiaries and affiliates
include Phelps Dodge, Seven Seas Resorts and Leisure,
Toledo Power, Mindanao Container Corp., Atlas Mining, AB
Capital, Anscor Land and A. Soriano Aviation.  (Philippine
Star  20-April-2000)

BW RESOURCES: Justice dep't subpoenas Tan, seven others
-------------------------------------------------------
The Justice department yesterday ordered BW Resources Corp.
majority shareholder Dante T. Tan and seven others to
appear before the five-member prosecution panel to answer
criminal charges the Securities and Exchange Commission
(SEC) hurled against them for wholesale stock fraud.

In a subpoena issued yesterday, Chief State Prosecutor Nilo
C. Mariano, who also heads the investigating group, also
mandated former BW president Eduardo G. Lim, Jr., BW
majority shareholder Jimmy Juan, Jr. and presidents of
respondent-brokerage houses Securities 2000, Inc., PNB
Securities, Mark Securities, Inc., Aurora Securities, Inc.
and Belson Securities, Inc. to attend a hearing on May 2.

The proceeding will be conducted at the DoJ training room
in Padre Faura, Manila.

"Under and by virtue of the authority vested in me by law,
you are hereby summoned to appear ... and then and there
submit your counter-affidavit and offer supporting
documents, if any, in your defense in connection with the
preliminary investigation of the case," said Mr. Mariano.

He warned if the respondents do not attend the hearing,
they may be denied their right to participate in
future proceedings.

"You are hereby warned that failure on your part to comply
with this subpoena shall be considered as
waiver on your part to present your defense in this
preliminary investigation," Mr. Mariano said.

He added a default on the their part will force the DoJ to
examine the case based solely on the complaint
the watchdog agency filed on April 6.

"Whereupon, the case shall be deemed submitted for
resolution on the basis of the evidence adduced by
the complainant," said Mr. Mariano.

Justice Secretary Artemio G. Tuquero, Jr. earlier issued
DoJ Department Order 122 assigning Mr. Mariano to spearhead
the investigation on the BW scam. His team is also composed
of state prosecutors Susan Dacanay, Ma. Emilia Victorino,
Gregorio Arizala, and Japar Dimaampao.

SEC filed the criminal complaint against BW stockholders
and brokers even with an effective preliminary
injunction from the Court of Appeals.  The Commission
pushed through with the filing, insisting its report is
independent from the Philippine Stock Exchange probe.

Messrs. Tan and Juan were cited for resorting to washed
sale transactions to jack up the price of the gaming firm's
stocks. They were also charged for insider trading.
Mr. Lim, who is Belson president, supposedly violated the
broker-director rule.

Washed sale, prohibited under Sec. 26 of the Revised
Securities Act, is effected when a stockholder uses a dummy
to buy his shares, resulting in increased trading activity.
An increase in stock turnover is a way by which stock price
could skyrocket.

Insider trading, a violation of Sec. 32, is a scheme where
a company officer sells or buys securities while
possessing information that could affect the value of the
shares.

The brokerage houses, on the other hand, supposedly
connived with the stockholders to effect the reported price
manipulation.

Aurora Securities was particularly cited for selling BW
shares it did not own, a violation against Sec. 27 of the
Revised Securities Act.

SEC was supposed to file a second partial report to the DoJ
this week. However, it postponed the submission to next
week. The second installment will reportedly include
Carmelo Santiago, Robert Co, and Clement Saw as
respondents.  (Business World  20-April-2000)

NATIONAL POWER CORP.: Oversight body for asset bidding?
-------------------------------------------------------
A congressional oversight committee (COC) is being proposed
to oversee the bidding process of the privatization of the
National Power Corporation's(NPC) transmission and
generation assets.

The creation of said legislative body for the transition in
the power industry is part of the agenda embodied in the
newlyapproved House Bill 8457 or the Electricity Industry
Restructuring Bill at the House of Representatives. The
specific functions and composition of the body, however,
will be specified in the law's implementing rules and
regulations.

Aside from its involvement in the NPC's privatization
process, the oversight committee is also tasked to review
and evaluate the performance of industry participants in
relation to the objectives and timelines set for the
industry's deregulation.  The government will be selling 40
percent of the NPC's transmission assets; and the bulk of
its generation assets, to be grouped into six.

Earlier, the power firm propounded a "part equity-part
debt" payment package for its generation companies
(gencos), which are scheduled for disposal three years from
the enactment of the proposed Electricity Industry Reform
Act.

NPC president Federico E. Puno earlier explained the scheme
would work in such a way that the winning bidders could
infuse, for instance, at least 50 percent equity and the
remaining 50 percent would be paid to NPC over a period of
10 years at commercial interest rates.

"For example, if a genco is designed to have 50-percent
equity and 50-percent debt , then the winning bidder puts
up $250 million front-end and repays NPC the other $250
million plus interests over 10 years," he said.

However, if said scheme would still saddle the financial
capabilities of the winning bidders, NPC would allow them
to sell at least 40 percent of the equity portion to a
strategic partner and offer the remaining equity shares to
the public through the stock market.

With this payment option, the power firm assumes that the
future owners of NPC facilities would have an easier way to
raise the necessary funds to acquire these assets given the
sluggishness of the global economy.  The payment package
was proposed after the private sector aired that the
winning bidders might not be able to pay for the gencos, of
which values are pegged at $500 million each. (Manila
Bulletin  21-April-2000)

PHILIPPINE AIRLINES: Tan offering to European carrier
-----------------------------------------------------
Taipan Lucio Tan is holding talks with a European airline
for the possible sale of his controlling stake in or part
of Philippine Airlines.

Finance Secretary Jose T. Pardo said he was informed of
this development by Tan himself in a recent meeting. Tan,
Pardo said, did not divulge the identity of the prospective
PAL buyer but some sectors believe it could be Lufthansa AG
of Germany.  The two airlines recently signed an agreement
allowing PAL to sell cargo space on Lufthansa cargo flights
between Manila and Frankfurt.

"He (Tan) said he was really serious in selling PAL and
that he has been in talks with a European carrier on this,"
Pardo said.

Pardo, however, could not say whether the taipan was
planning to sell his entire stake in PAL. He did not
discount the possibility that Tan might want to hold on to
a portion of it.  The meeting, according to Pardo, was held
to iron out the remaining concerns in the planned sale of
the government's and Tan's combined stake in Philippine
National Bank. "And Tan brought up the matter of PAL's sale
in this meeting," he said.

Pardo said he offered to talk to other carriers like Eva
Air or China Airline in behalf of Tan about the planned PAL
sale but the taipan said the two airlines might not have
deep pockets to buy into the country's flag carrier.
The finance chief said an investor would need about $800
million to acquire the controlling stake in PAL.

Lufthansa of Germany is also a partner of Tan's Macro Asia
Corp. in airport services operations. Macro Asia and
Lufthansa will operate a 13-hectare portion of the Ninoy
Aquino International Airport that was recently declared as
an ecozone.  Tan's group owns more than 90 percent of PAL.

The taipan said his intention to sell PAL was meant to
address claims that he was getting preferred treatment from
President Estrada which fuels talks of cronyism in the
Estrada administration.

"He does not want to be blamed anymore, so he said he had
decided to sell both PAL and PNB at the right prices," said
Pardo.

Pardo said PAL has arrested its financial hemorrhage
arising from the Asian crisis and has already been showing
better results.  The debt-saddled airline said it was
planning to start settling part of its $2.2 billion
obligations.  PAL has projected a net loss of P656 million
in the current fiscal year ending March. But the flag
carrier said it could end the fiscal year by breaking even.
(Philippine Daily Inquirer  20-April-2000)


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

BANGKOK BANK : To report loss
DBS THAI DANU BANK: To report loss
STANDARD CHARTERED NAKORNTHON BANK: To report loss
--------------------------------------------------
Thai banks are reporting lower net losses and even small
profits for the first quarter, as banking analysts predict
brighter prospects for the whole sector this year.

Bank of Asia also reported a net profit in the first
quarter. Its net profit totalled Bt211.27 million, compared
with a loss of Bt175.63 million in the same period last
year.

DBS Thai Danu Bank (DTDB) announced a drop in net losses in
the first quarter to Bt174.7 million compared to a loss of
Bt347.3 million in the same period last year.  It reported
a sharp turnaround in operating results, reporting its
smallest operating loss in eight quarters, Bt33.7 million.

The improvement came from interest earnings, up 19.8 per
cent to Bt348.6 million, and from investment earnings,
which rose to Bt124.1 million from negative Bt67.6 a year
ago, said DTDB chief Chulakorn Singhakowin. In addition,
operating expenses for the period declined by Bt56.3
million, or 8.3 per cent, from first quarter last year.
Pornsanong Tuchinda, president of DTDB, said that the first
quarter results were beginning to reflect the bank's
efforts to return to profitability.

"We have gone through a difficult period over the past two
quarters as we made a number of tough decisions to get DTDB
back on track," he said.

Standard Chartered Nakornthon Bank (SCNB) also showed a
much improved first quarter, with net losses down sharply
from Bt410.73 million in last year's first quarter to
Bt165.21this year.  The remaining banks will report their
financial performances today, with analysts predicting that
Thai Farmers Bank (TFB) will show its first net profit
since the economic crisis began in mid 1997.

Yesterday, retail investors bought banking stocks ahead of
the announcements, speculating that local banks would
report improved operating results and that some would post
small net profits. SCB's shares rose Bt0.50 to close at
Bt33.50, but DTDB's dropped to Bt12.75. BOA's shares
remained unchanged at Bt19.

According to the Bank of Thailand, NPLs fell 0.7 per cent
from February to 38.1 per cent of total loans last month.
The decline was largely attributed to continued progress in
corporate debt restructuring, as well as the improved
economy.

Unlike TFB, however, BBL was expected to post further
losses due to heavy loan provisioning during last month,
Seamico said. Nava Vickers Ballas Securities Ltd told Dow
Jones Newswires that BBL was likely to continue to see a
net loss in the quarter as it needed to set aside at least
Bt26.80 billion in further provisions this year.  (The
Nation  21-April-2000)

BANGKOK BANK: Denies any interest in EffPlanner
-----------------------------------------------
Bangkok Bank yesterday said it had no financial interest in
the Australian-based accounting firm Ferrier Hodgson, nor
its subsidiary Effective Planner. The bank made its
statement publicly in response to allegations it had a
controlling interest in Effective Planner.

Bank president Chartsiri Sophonpanich said the reports were
groundless. Effective Planner was voted by Thai
Petrochemical Industry Plc's creditors to develop a plan to
restructure the company, which was last month declared
insolvent by the Central Bankruptcy Court. Bangkok Bank is
one of TPI's major creditors.   (The Nation  22-April-2000)

BANK OF THAILAND: Charges to be heard against ex-staff
------------------------------------------------------
The Criminal Court has accepted a petition from Associated
International Engineering Ltd for charges to be filed
against three former Bank of Thailand officials over
allegations of misconduct and causing damage to the
company.

Two former Jalaprathan Cement Plc executives have also been
charged. They are accused of being accomplices, according
to the court's statement.  Those charged are Vijit Supinit,
a former BOT governor; Jaroong Nookhan, a former deputy
governor; Adul Dulayapeeradit, a former deputy director of
the BOT's examination and analysis department; Ayupul
Karnasuta former JCC chairman; and Chandhana Sukumanont,
former JCC managing director.  The first hearing begins on
June 2.

On April 12, Associated International Engineering Ltd filed
a legal action against former BOT officials, alleging they
had ordered commercial banks to audit the company's current
accounts at the request of Ayupul.  The action took place
in 1995 and was in breach of the Commercial Act AC 2505,
article 24.

That article prohibits the central bank from auditing
particular accounts of private companies.  A source close
to the case said that Ayupul and some former executives of
JCC had requested an audit of Associated International
Engineering Ltd's accounts.  The request was made because
they suspected that the construction company's owner - and
also a JCC director at the time - had drained money from
the company.

They suspected that a portion of the money paid by JCC by
cheque to the director for hiring Associated
International Engineering Ltd for a construction job had
been lost. (The Nation  21-April-2000)

GSS ARRAY TECHNOLOGY PCL: Pair of deal contingencies met
--------------------------------------------------------
Two conditions of the March 16th, Pre-Tender Agreement
between GSS Array Technology PCL and ACT Manufacturing Inc.
have now been met.

GSS Array Technology has now received the full approval
from the Board of Investment with respect to its land
ownership of its operating premises at Ayudhaya, and the
proposed transaction has received unconditional clearance
from the US regulatory authorities under the Hart-Scott-
Rodino anti-trust rules.

Both approvals were received ahead of schedule and clear
the way for the transaction to be completed if shareholders
vote in favour of the de-listing of GSS shares at the
April 28th meeting of GSS shareholders.

With these two conditions met, the only remaining
conditions in the Pre-Tender Agreement are for the
shareholders of GSS Array Technology PCL to approve the de-
listing at the upcoming EGM on April 28th, and for the SET
subsequently to approve the de-listing.

GSS will hold an EGM on April 28th, at which management
will ask the shareholders to vote in favour of the de-
listing of GSS shares from the SET. Upon a favourable vote
in the EGM for de-listing, and the SET s approval in
principle, ACT Manufacturing Inc. will be required to
submit a tender offer of 163 baht per share for all
outstanding shares.  (Stock Exchange of Thailand  20-April-
2000)

KARAT SANITARYWARE PLC: Announces debt restructuring
----------------------------------------------------
Karat Sanitaryware Public Company Limited, through Suroj
Subhasavasdikul, Joint Managing Director, hereby informs
the Stock Exchange of Thailand that on April 20, 2000, the
Company signed the Restructuring Agreement with all 14
Lenders. The Restructured Debt is approximately 2,800
Million Baht.

The main issues of the Agreement are as follows:
1. Initial repayment of 100 Million Baht payable after
signing the Agreement; 2. The remaining 2,700 Million Baht
extended to 7 years with 3 year grace period; and 3. Low
interest rate for the first three years. (Stock Exchange of
Thailand  21-April-2000)

PREECHA GROUP PLC: Reports progress of debt restructuring
---------------------------------------------------------
The company, through  hereby reports on the progress of
debt restructuring with the creditors/financial
institutions.

1. Loan at Krung Thai Bank Public Company Limited. Mulcom
Co., Ltd ., a subsidiary of the Company, has an outstanding
loan amount Baht 115.10 million with the accrued interest
of Baht 52.66 million. Mulcom has signed the contract of
the debt restructuring detailed as:

a) Outstanding loan will be reduced to the amount of Baht
28 million after transfer some securities and the interest
payment will be paid each month within the loan period of
the next five years.

b) The rest of accrued interest will be waived by Baht
27.76 million if there is no default on the signed
contract.

2. Loan at Siam Commercial Bank Public Company Limited
(SCB).  The Company has an outstanding loan amount Baht
145.76 million with the accrued interest of Baht 26.97
million. The Company has signed the contract of the debt
restructuring detailed as:

a) SCB will extend the loan repayment to seven years.

b) The accrued interest will be reduced to the normal
interest rate basis and paid by one per cent each month for
three years.

c) The rest of accrued interest together with the principal
will be paid after the project is running which will be on
the 4th year.

3. Loan at Bank Thai Bank Company Limited (BT).  The
Company has an outstanding loan amount Baht 146.11 million
with accrued interest of Baht 50.88 million. The Company
has signed the contract of the debt restructuring detailed
as:

a) The accrued interest will be reduced to the MLR-(or MLR
minus) basis option.

b) The Company will transfer all securities to pay off the
outstanding debt under the condition of prior right to buy
back within 3 years

4. Loan at Bank of Ayudhya Public Company Limited (BAY).
The Company has an outstanding loan amount Baht 123.58
million with accrued interest of Baht 48.52 million. And
P.B. Estate Company Limited (PB) a subsidiary of the
Company, has an outstanding loan amount Baht 110.00 million
with accrued interest of Baht 43.72 million. The Company
and PB have signed the contract of the debt restructuring
detailed as:

a) BAY will extend an additional 3 years for loan period.

b) The accrued interest will be reduced on the MLR (or MLR
minus) and paid by one per cent each month and the rest
will be paid at the end of the contract.

c) BAY will charge the interest rate on the MLR-(MLR minus)
basis for the Company and PB.

5. Bank Overdraft Account at Bangkok Bank Public Company
Limited (BBL). The Company has an outstanding amount of
Baht 19.47 million which BBl approved the Company to use
the O/D account as regular condition.

6. Bank Overdraft Account at Bangkok Bank Public Company
Limited (BBL). The Company has an outstanding amount of
Baht 9.05 million which BBl approved the Company to use the
O/D account as regular condition.

We shall inform you if there are any progress on the
negotiation of the other outstanding loans from the bank
and financial institutions amounted Bath 2,136.68 million,
which is separated to the principle amount of Baht 1,502.83
million and the accrued interest amount of Baht 633.85
million.  (Stock Exchange of Thailand  21-April-2000)

THAI ENGINE MFG: Debt restructuring starts
------------------------------------------
The Central Bankruptcy Court has ordered debt restructuring
to begin for Thai Engine Manufacturing.

Its creditors-Sumitomo Bank, Overseas Chinese Banking Corp
and Bangkok First Investment and Trust-submitted a petition
for rehabilitation. They appointed Churchill Price Planner
to prepare the restructuring plan.

Also yesterday, Matcon Trading filed a petition for
rehabilitation. The construction company owes 519.9 million
baht to 110 creditors. The company proposed Poonchalerm Co.
to prepare the restructuring plan. The court set a hearing
for May 22. (Bangkok Post  22-April-2000)

THAI PETROCHEM.INDUS.: TPI management change
--------------------------------------------
Thailand's Bankruptcy Court yesterday upheld a vote by
creditors to install new management at Thai Petrochemical
Industry pcl (TPI), which was ruled insolvent last month.

The ruling comes a day after creditors led by Bangkok Bank
pcl and the International Finance Corp voted by a three-
quarters majority to oust a team led by TPI founder Prachai
Leophairatana in favour of Australia-based bankruptcy
specialist Ferrier Hodgson Ltd.

The court also rejected a request by Mr Prachai for a one-
month management transition. Mr Prachai's family has
personal guarantees of US$1.8 billion (S$3.1 billion) on
TPI's debt of US$3.5 billion,

"As of tomorrow, I can no longer sign company cheques," Mr
Prachai said outside the Bangkok courthouse. He said he
would cooperate with the new management in developing a
rehabilitation plan over the next three to five months.

Effective Planners, the representative of creditors
controlling the restructuring of TPI's US$3.5 billion debt,
said it would not write down the capital of the company.

"There is no capital write-down in the (debt restructuring)
plan," Anthony Norman, managing director of the debt
restructuring specialist firm, told a news conference.

TPI shares closed down almost 15 per cent or 1.60 baht (42
US cents) at 9.40 baht yesterday amid fears that the new
management of the insolvent firm would write down the
company's existing capital prior to a recapitalisation
exercise.  Mr Norman also said the creditors did not intend
to write off TPI's debts but expected it all to be repaid
eventually.

TPI has been a bellwether bankruptcy case for Thailand,
where defaults surged more than fivefold after a currency
devaluation in 1997 triggered a recession and prompted a
bailout through the International Monetary Fund (IMF).
Though new bankruptcy laws were passed last year,
enforcement has so far been inconsistent.

Ferrier said it hired more than 50 chemical engineers and
executives to help it manage TPI. Ferrier, which will
manage TPI through its Effective Planners unit, has served
as adviser to Bangkok Bank. TPI owes the bank about
US$950 million.

The case was seen as the first big decision of the
bankruptcy court, strengthened over the past two years to
help clear up the backlog of business failures and bad debt
-- currently at 38 per cent of total lending -- left by the
regional economic meltdown of mid-1997.  Since the
petrochemical company became unable to service its debt in
September 1997, it has bargained hard with creditors.

After signing an outline restructuring agreement in
February 1999, TPI and creditors were unable to agree on a
final deal, and their relationship deteriorated. Creditors
blamed the company for refusing to implement the
restructuring plan. TPI said creditors wanted to take over
the company's assets rather than nurse it back to health,
which creditors deny.

In mid-March, in a ruling crucial to investor confidence
underpinning Thailand's economic recovery, TPI was declared
insolvent by the Bankruptcy Court. That dealt a severe blow
to the family-controlled firm and paved the way for
Wednesday's action. Effective Planners will retain all
employees while it draws up a restructuring plan, due
within 90 days. The plan will need creditor approval. (The
Business Times  21-April-2000)

THAI PETROCHEM.INDUS.:Prachai cooperating,smooth transition
-----------------------------------------------------------
Prachai Leophairatana, the outgoing CEO of Thai
Petrochemical Industry, will today hold a meeting with
Effective Planner Co to cooperate with the new management
of the petrochemical giant, which employs about 5,000
workers.

There were rumours that these workers would protest
yesterday following Wednesday's creditor vote for Effective
Planner to replace the existing management led by Prachai,
but no protest actually took place.

To smoothen the transition, Prachai, who will remain CEO
for another three months, yesterday promised to cooperate
with the new management, adding that he had never abused
management powers and indulged in corrupt practices during
after TPI stopped servicing its debt in late 1997.

Effective Planner will finalise details for a five-year
debt restructuring plan for TPI within the next three
months. The final plan is expected to be submitted to
creditors around August this year.  When a majority of
creditors approve the plan, TPI will be under a five-year
debt restructuring supervised by the court and managed by
Effective Planner.

Effective Planner is 99 per cent-owned by Australian firm
Ferrier Hodgson and supported by major creditors led by
Finance Corp, Citibank and US Export Import Bank. With
Prachai joining hands with the new management, TPI is
expected to continue with its business as usual.

According to Anthony Norman, managing director of Effective
Planner, Barry Murphy, former CEO of Caltex Australia will
work with Pramon Leophairatana, Prachai's brother, to take
responsibility for the plant operations to smoothen the
change for TPI employees.

At this stage, Norman said there will be no immediate
layoffs and that the plan to sell non-core assets such as
storage tanks and harbour as announced earlier will be
reviewed to ensure that TPI remains one of Southeast Asia's
most modern and integrated petrochemicals operators.

In essence, the restructuring plan of TPI is to pay off
$1.54 billion of the company's total debt of $3.4 billion
through an equity issue of $1 billion and a reduction of
$540 million in principal loans.  In addition, unpaid
interests of $360 million, part of the existing debt, will
be converted into equity, to be owned by the creditors. In
this process, the shareholding of Leophairatana family will
be reduced from 62 per cent to 35 per cent.

The remainder of $1.5 billion of debt will be settled via
cashflow by the end of 2003. At the end of the five-year
restructuring plan, the debt to cashflow ratio of TPI is
forecast to fall from the current 11 to 4.5, which is the
average for the petrochemical industry.

Meanwhile, the Court yesterday approved the vote of 75.89
per cent in favour of Effective Planner ,as cast on
Wednesday by 78 creditors holding a combined debt of Bt101
billion owed by TPI.  TPI owed a total of Bt131 billion to
creditors. TPI Planner, 49 per cent owned by Leopharatana
family, got only 24.11 per cent votes from 287 creditors so
Effective Planner won the vote to be the new management.

The Wednesday vote in support of Effective Planner was the
second defeat for Prachai and his family after the Court
ruled TPI insolvent in March this year. (The Nation  21-
April-2000)


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

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Darryl Henning, Managing Editor, James Philip P.
Jover and Cristina Pernites, Editors.

Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale
or publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without prior written permission of the
publishers.  Information contained herein is obtained from
sources believed to be reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6
months delivered via e-mail. Additional e-mail
subscriptions for members of the same firm for the term of
the initial subscription or balance thereof are $25 each.
For subscription information, contact Christopher Beard at
301/951-6400.  

                     *** End of Transmission ***