TCRAP_Public/000511.MBX      T R O U B L E D   C O M P A N Y   R E P O R T E R

                A S I A   P A C I F I C

         Thursday, May 11, 2000, Vol. 3, No. 92

                         Headlines


* A U S T R A L I A *

REINSURANCE AUSTRALIA CORP.: Managing director quits
TELSTRA: Shares continue nosedive


* C H I N A  &  H O N G  K O N G *

CHINA EVERBRIGHT HOLDINGS: Stock falls on probe rumors
FAMOUS OCEANS INT'L CO.LTD.: Facing winding up petition
SIU-FUNG CERAMICS HLDGS.: Court orders winding up
SIU-FUNG CERAMICS HLDGS.: Stock trading ordered ceased
SUNDAY COMMUNICATIONS: Posts wider net loss
WAI TAT TIMBER FACTORY LTD: Facing winding up petition


* I N D O N E S I A *

PT ANWAR SIERAD: Asks for 45-day debt freeze extension
PT TIMOR PUTRA: IBRA orders debt paid before owner pullout
PT TIMOR PUTRA: KIA to provide financial aid after rehab


* J A P A N *

FUJI ELECTRIC CO.: To use equity to cover pensions
IDEMITSU KOSAN CO.: Cuts debt to 1.14T Yen
MITSUBISHI CHEMICAL CORP.: To close acetone plant
MITSUBISHI ELEC.CORP.: To use equity to cover pensions
NIPPON TEL.& TEL.CORP.: Stock trades down
SOFTBANK CORP.: Stock trades down
TOKYO SOWA BANK: Police to probe former management
VICTOR CO.: Posts third consecutive annual loss


* K O R E A *

DAEHAN INVEST.TRUST CO.: Cash injection to begin June
DAEWOO MOTOR: Only assets to be sold off
DAEWOO GROUP: Lack of cooperation renders workouts futile
KOREA INVEST.TRUST CO.: Cash injection to begin June
SEOUL BANK: Deutsche Bank begins due diligence audit  


* M A L A Y S I A *

FABER GROUP BHD: Shareholders approve restructuring scheme
TIME ENGINEERING: `Fate lies in creditors' hands'- Sapura
TIME ENGINEERING: Sapura just wants debt settled


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

PHILIPPINE NAT.BANK: Buyers want more due diligence time
URBANCORP INVESTMENTS: SEC grants debt repreive
URBANCORP INVESTMENTS: Receiver appointed


* T H A I L A N D *

ASIAN DEVELOPMENT BANK: US refuses to mull new funding
BANGKOK METRO.BANK: Sale to HSBC nearly wrapped up
EASTERN PRINTING PLC: Rehab hearing date set
GSS ARRAY TECHNOLOGY: Seeks delisting for tender offer
KRUNG THAI BANK: Restructuring smaller-scale loans
RAIMON LAND PLC: Reports restructuring progress to SET
THAI TEL.& TEL.: Suspended from trade


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

REINSURANCE AUSTRALIA CORP.: Managing director quits
----------------------------------------------------
Reinsurance Australia Corp managing director Mr Nick
Steffey yesterday quit the company after a barely a year in
the post, in the process avoiding a potentially hostile
gathering of shareholders at the company's annual meeting
next week.

In a two-line statement, ReAC said Mr Steffey had resigned
and both he and the company "have reserved their respective
rights."  Observers took the statement to mean the parties
had yet to reach a settlement of termination of his three-
year contract.  It is believed the decision to leave was Mr
Steffey's.

Recently, Mr Steffey had been working on a management
proposal to take ReAc private, and was willing to commit $2
million of his own money.

"He had been there for only a year and he can hardly be
held responsible for the problems of the past," said a fund
manager. "I don't think he was too keen to face the annual
meeting. ReAC investors have lost a lot of money."

Mr Steffey was to stand for re-election at ReAC's annual
meeting on Monday. Last month chairman Mr Peter Cadwallader
warned shareholders that the company could face damages for
breach of contract if shareholders did not re-elect Mr
Steffey, who received total benefits in 1999 of $1.01
million.

Industry sources said Mr Steffey may have already left for
the US, where he started a 30-year career in reinsurance.
He joined GIO Australia in mid-1998, only to be ousted
following a $3 billion hostile, and often bitter, takeover
offer for the company from AMP.

GIO shareholders, told by their board not to accept the AMP
bid, were left with large losses after sticking with their
company, finding it had massive losses from its reinsurance
business.  Since Mr Steffey joined ReAC in early May last
year, its shares slumped from $1.51 to close yesterday at
9c after last year suffering a $467 million net loss.

A string of catastrophes have placed a heavy burden on
ReAC, which has undertaken to run-off its business over
three to four years, involving settling obligations with
policy holders and settling some contracts early. (Sydney
Morning Herald  10-May-2000)

TELSTRA: Shares continue nosedive
---------------------------------
Shares in Telstra are down for the seventh consecutive day,
despite hurried assurances that its profit and dividend
streams are on track.

Explaining last night's Budget, Treasurer Peter Costello
said he had been told of "very bad news" regarding
Telstra's dividends in the coming year.  Telstra today says
it expects earnings to return to double-digit growth for
the full year, and its company policy [is] to declare
dividends of at least 60 per cent of operating profit.

Despite this assurance, Telstra was still down seven cents
to $6.63 shortly before 2:00pm AEST.  Overall, the All
Ordinaries index is down 32 points, or one per cent, to
3,022. This is in line with a weaker Wall Street. (ABC News
Online  10-May-2000)


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

CHINA EVERBRIGHT HOLDINGS: Stock falls on probe rumors
------------------------------------------------------
The share prices of China Everbright companies fell again
yesterday as the counters were further clouded by
speculation about an investigation involving senior
management.

China Everbright Ltd, the listed flagship of mainland
conglomerate China Everbright Holdings, fell 3.46 per cent
to HK$4.875 yesterday. It fell 8.18 per cent on Monday.
Affiliate China Everbright International shed 4.54 per cent
to 42 HK cents yesterday, while China Everbright Technology
fell 4.34 per cent to 66 HK cents.  The two companies fell
5.38 per cent and 5.48 per cent, respectively, on Monday.

The counters were hit on Monday by reports China Everbright
executive director and general manager Shao Zhengkang was
being investigated for involvement in the "economic
irregularities" surrounding former chairman Zhu Xiaohua.
Mr Zhu was sacked by the central government in July.

SAR-based officials of the group denied the rumours about
Mr Shao, who has been back in the mainland.  A spokesman
said yesterday: "Mr Shao is expected to come back to Hong
Kong in about two weeks after his business trip in
Beijing."

Analysts said the share prices of group companies could
face more pressure in the short term as some foreign
investors might be sceptical about the denials. However,
Keith Li, a Worldsec International analyst, said he was
optimistic about the group's prospects in the long run as
it had a clear development direction and had built a solid
middle management.

Mr Shao, who joined China Everbright in 1995, is viewed as
a close associate of Mr Zhu.  Both men worked together at
the International Monetary Fund in Washington and the
People's Bank of China, the central bank. (South China
Morning Post  10-May-2000)

FAMOUS OCEANS INT'L CO.LTD.: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for June 21 on the petition of So
Wia Man for the winding up of Famous Oceans International
Co. Limited. A notice of legal appearance must be filed on
or before June 20.

SIU-FUNG CERAMICS HLDGS.: Court orders winding up
-------------------------------------------------
The Court of First Instance yesterday ordered Siu-Fung
Ceramics Holdings to be wound up, ending a 3-1/2 year
search for a debt restructuring plan.  

Alfred Chan, counsel for The Hongkong and Shanghai Banking
Corporation, said its client had decided to ask for a
winding up order after Siu-Fung was unable to repay its
debts to the bank.  He said some previous court
adjournments were aimed at reaching an agreement on
restructuring proposals but they had not received the
approval of creditors.  He also said no challenge had been
made to the validity of the debts.

In 1996, Siu-Fung experienced serious cash flow problems,
mainly due to the liquidations of its German subsidiaries.  
The Hongkong and Shanghai Bank in March 1999 filed four
petitions against Siu-Fung Ceramics and three of the
group's subsidiaries, NHD Systems (Holdings), NHD Systems
(Asia) and Siu-Fung Ceramics Concept.  

It was estimated that the Siu-Fung group owed about $1.53B
to the bank and its subsidiary, Hang Seng Bank.  The $1.53B
constituted a major part of Siu-Fung indebtedness to its
creditor banks.  For the year ended December 31, 1999, Siu-
Fung Ceramics only achieved a turnover of $18.8M,
representing a 70.3% fall from 1998.  Siu-Fung Ceramics
Holdings recorded a net loss of $42.1M last year, according
to its 1999 annual repo

SIU-FUNG CERAMICS HLDGS.: Stock trading ordered ceased
------------------------------------------------------
The Stock Exchange of Hong Kong said it has ordered the
suspension of trading in the shares of Siu-Fung Ceramics
Holdings Ltd as the company will be wound up.  Siu-Fung
last traded at 0.035 hkd.  (AFX News Limited  10-May-2000)

SUNDAY COMMUNICATIONS: Posts wider net loss
-------------------------------------------
Sunday Communications said yesterday that its net loss for
the year to December 31 widened to $823.93M from $802.93M
in 1998.  The fall came despite a near doubling of turnover
to $1.03B from $557.31M previously.  Losses per share
totalled 40 cents, compared with 35 cents previously.

WAI TAT TIMBER FACTORY LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for May 31 on the petition of Chan
Kam Tong for the winding up of Wai Tat Timber Factory
Limited. A notice of legal appearance must be filed on or
before May 30.


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

PT ANWAR SIERAD: Asks for 45-day debt freeze extension
------------------------------------------------------
PT Anwar Sierad has asked the Commercial Court to extend
its debt payment suspension for 45 more days, the Jakarta
Stock Exchange said, citing a letter from the company.
It said the company's debt payment suspension ended on May
8.

"PT Anwar Sierad has asked for an extension on its debt
payment suspension for another 45 days until June 22,
2000," it said.

It said the court will decide on May 17 whether to accept
the request or not.  A bankruptcy petition was filed
against Anwar Sierad in September for its failure to repay
2 mln usd in matured promissory notes.  (AFX News Limited  
10-May-2000)

PT TIMOR PUTRA: IBRA orders debt paid before owner pullout
----------------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) says that
businessman Hutomo "Tommy" Mandala Putra, the youngest son
of former strongmen Soeharto, must repay his debt to the
agency before pulling out of the Timor car maker PT Timor
Putra Nasional (JSX: TPN).

The Jakarta Post reported that IBRA was responding to
earlier reports the government and the South Korean Kia
Motors Corp. had agreed to form a joint venture to resume
the stalled Timor national car project.

Minister of Trade and Industry Luhut. B. Panjaitan earlier
said that under the plan, Tommy would have to leave Timor.
He also indicated the government would settle Timor's debts
under a debt to equity swap.

Soeharto in 1996 appointed TPN to develop the Timor
national car, providing the company with special
privileges, including tax breaks.  But the car project was
halted when the country was at the height of the economic
crisis in 1998 and amid pressure from the World Trade
Organization.

Timor owed several state banks some Rp 3 trillion (US$ 380
million) in debts, which have since been taken over by
IBRA. Timor is also controlled by the agency.  (Asia Pulse  
09-May-2000)

PT TIMOR PUTRA: KIA to provide financial aid after rehab
--------------------------------------------------------
South Korea's KIA Motor Corp said it would provide
financial assistance for debt ridden Indonesian car maker
PT Timor Putra Nasional (TPN) immediately after the
completion of its debt restructuring.

Song Do Park, KIA vice president, said the Indonesian Bank
Restructuring Agency (IBRA) is expected to complete the
restructuring of TPN's debt not later than July.  (Asia
Pulse  09-May-2000)


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

FUJI ELECTRIC CO.: To use equity to cover pensions
MITSUBISHI ELEC.CORP.: To use equity to cover pensions
------------------------------------------------------
Mitsubishi Electric Corp. (6503) has announced it plans to
cover half of its parent-only retirement and severance fund
shortfalls by transferring equity holdings to trusts in
fiscal 2000. Fuji Electric Co. (6504) said it intends to
use the same method to cover all of its pension fund
shortfalls, company sources said Tuesday.

Assuming a discount rate of 3.5%, Mitsubishi Electric's
unfunded retirement liabilities total 240 billion yen. The
company plans to cover half of the shortage by transferring
equity holdings to trusts in fiscal 2000. The remainder
will be covered over the next 10 years.

Mitsubishi Electric expects to mark about 60 billion yen in
extraordinary loss in fiscal 2000 to cover the shortfalls.
But the company expects to secure a net profit as pretax
profit is expected to exceed 60 billion yen.

Fuji Electric's unfunded retirement liabilities total about
100 billion yen, using a discount rate of 3.5%. The company
plans to cover the entire shortage by transferring equity
holdings to trusts. Most of the equity to be transferred
are likely to be those held in Fujitsu Ltd. (6702), which
have large latent profit.

The move is likely to have little affect on Fuji Electric's
earnings since the equity holdings to be transferred to
trusts have relatively low book values. (Nikkei  09-May-
2000)

IDEMITSU KOSAN CO.: Cuts debt to 1.14T Yen
------------------------------------------
Idemitsu Kosan Co. cut its outstanding debt to an estimated
1.14 trillion yen as of March 31, down 93.7 billion yen
from a year earlier, the company said Tuesday.

The oil refiner sold abandoned gasoline stations, employee
housing and other assets to pay down the debt, exceeding
its initial target of a 70 billion yen reduction.

Starting this year, it plans to sell large assets such as
oil storage tanks, aiming to reduce the debt to 900 billion
yen by March 2003. When it began its debt reduction plan in
April 1998, its debt stood at 1.32 trillion yen.

Idemitsu said sales in fiscal 1999 rose about 14% from the
year before to 1.91 trillion yen. It is estimating pretax
profit at 13 billion yen, more than double the previous
year's 5.9 billion yen. Net profit is seen at 1.5 billion
yen. If actual results match those projections, fiscal 1999
would be the first time since fiscal 1990 that both sales
and profit have risen. (Nikkei  10-May-2000)

MITSUBISHI CHEMICAL CORP.: To close acetone plant
-------------------------------------------------
Mitsubishi Chemical Corp. (4010) said Tuesday that in June
it will close its polycarbonate resin and acetone factory
in Mizushima, Okayama Prefecture, and concentrate
production at its Kashima plant in Ibaraki Prefecture.

Faced with a continuing acetone glut, the company aims to
restore its competitiveness by revamping its production
system in line with slack domestic demand. The compound is
used in solvents, as well as the polycarbonate resins of
compact discs.

The Mizushima plant has an annual capacity of 38,000 tons,
while the Kashima factory can produce 110,000 tons a year.
Kashima has been running at full tilt, but capacity
utilization at Mizushima has fallen to 70%.  (Nikkei  10-
May-2000)

NIPPON TEL.& TEL.CORP.: Stock trades down
SOFTBANK CORP.: Stock trades down
-----------------------------------------
Softbank, one of the world's largest backers of online
businesses, was bid lower as the number of potential
sellers outweighed the number of those who wanted to buy.
Shares were last offered at 26,380, down from its previous
close of 26,980. Its shares rose more than 25-fold between
January 1999 and Feb. 15 this year.

NTT fell 40,000 yen to 1.42 million after Japan's No. 1
phone company yesterday said it pay 67 percent premium to
buy control of Verio Inc. for $5.5 billion. Standard &
Poor's said it may revise down NTT's debt rating in the
near future.

Some new members of the Nikkei 225 continued to fall after
buying from index-tracker funds had pushed their share
prices more than justified by earnings. (Bloomberg  09-May-
2000)

TOKYO SOWA BANK: Police to probe former management
--------------------------------------------------
Police likely will launch in the next few days an
investigation of the former management of Tokyo Sowa Bank,
a major second-tier regional bank that went bankrupt in
June last year, on suspicion of declaring bogus funds as
part of its net worth in a bid to prevent itself from being
declared insolvent, The Yomiuri Shimbun learned Tuesday.

The Metropolitan Police Department believes that about 20
billion yen of funds the bank claimed to have raised in
September 1997 and March 1998 for its net worth--the tally
of its capital, reserves and retained earnings--were
artificially inflated. This was made possible when the bank
provided loans to its clients and affiliates so that they
could purchase new shares the bank issued to strengthen its
capital base, informed sources said.

The MPD reportedly will question Shoichi Osada, 77, former
chairman of the bank in connection with the case. The bank
was declared insolvent by the Financial Reconstruction
Commission in June.  The MPD was set to hold talks with the
special investigation division of the Tokyo District Public
Prosecutors Office and the administrators for the bank
Wednesday at the earliest, sources said.

The bank extended a large amount of loans to small and
medium-sized real estate companies and nonbank financing
firms during the bubble economy era in the late 1980s, and
the loans became irrecoverable as the debtors suffered
financial difficulties once the bubble burst.  The bank's
own management situation then began to deteriorate, and it
had been in the red since fiscal 1996.

As the bank started shaving off its net worth to write off
the huge amount of nonperorming loans, its capital-adequacy
ratio--the ratio of net worth to total assets, which is an
indicator of a bank's health--plunged to 2.85 percent as of
the end of March 1997.  According to the "prompt corrective
action" regulation implemented by the Financial Supervisory
Agency in April 1998, any bank whose capital-adequacy
ratio dips below the 4 percent level is subject to the
agency's disciplinary measures, which call for the bank to
replenish its net worth. (The Daily Yomiuri  10-May-2000)

VICTOR CO.: Posts third consecutive annual loss
-----------------------------------------------
Victor Company of Japan, an audio and video equipment
manufacturer of Matsushita Electric Industrial Group, said
it lost money for a third year as it paid for early
retirement and other one-time restructuring charges,
Bloomberg reported.  The maker of JVC brand appliances said
its group net loss narrowed to 5.3B yen, or 21.01 yen a
share, in the year ended March 31, from 8.3B yen, or 32.71
yen, a year ago.  The loss in the most recent year included
a four-billion yen charge for early retirement.


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

DAEHAN INVEST.TRUST CO.: Cash injection to begin June
KOREA INVEST.TRUST CO.: Cash injection to begin June
-----------------------------------------------------
The government will pump around 5 trillion won ($4.5
billion) in public funds into two ailing investment trust
companies (ITCs) starting next month, the Financial
Supervisory Commission (FSC) said yesterday.

Korea Investment Trust Co. (KITC) and Daehan Investment
Trust Co. (DITC) will also be split into two companies each
in June, the commission said.  The decision came at a
meeting of top economic policymakers - Senior Presidential
Secretary Lee Ki-ho, Minister of Finance and Economy Lee
Hun-jai, FSC Chairman Lee Yong-keun and Planning and Budget
Minister Jin Nyum.

The cash injection will be made in stages until the end of
the year, while its amount and timing will be decided at a
financial policy consultative meeting Friday, the FSC said.
Public funds for Korea Investment Trust and Daehan
Investment Trust will be raised by asset-backed securities
to be issued by the Korea Deposit Insurance Corp. and a
loan of 3 trillion to 4 trillion won from the Korea Asset
Management Corp.

The commission said that each company will be split into an
investment-trust management company and a securities
company. Public funds will be put into each securities
company after the split, it added.  The decision ends
months of market uncertainty over how the debt of the two
investment trust companies would be restructured.

A preliminary result of a due diligence on the two
companies showed that their combined debts amount to around
5.5 trillion won.

Upon injection of public funds, the two firms will be
required to conclude a memorandum of understanding (MOU) on
reorganization with the financial watchdog. (The Korea
Herald  10-May-2000)

DAEWOO GROUP: Lack of cooperation renders workouts futile
---------------------------------------------------------
The workouts at 12 Daewoo subsidiaries are feared to be on
the verge of becoming futile due to a lack of cooperation
from government authorities and a revolt among minor
shareholders, who are against rescue plans established to
date.

The head of the government's Corporate Restructuring
Committee Oh Ho-keun, who is also the chair of the Daewoo
group's restructuring steering committee, said Tuesday in
an interview with the Chosun Ilbo that creditor banks have
been unable to make headway with their voluntary workouts
of Daewoo units due to the absence of active cooperation
from the government. According to Oh, without the support
of authorities, there is a good chance that the workouts
will end in failure, which would in turn open up risk for
another economic crisis.

In particular, Oh drew attention to the Korea Asset
Management Corp. (KAMCO), saying that the government
agency, which disposes of bad assets, has not been
cooperative in purchasing the bad debts of Daewoo
subsidiaries. He said that as a result of KAMCO's failure
to step in to help, negotiations with foreign creditors
have been jeopardized.

Oh also called for tax breaks in the spinning off of Daewoo
subsidiaries, saying the total amount of taxes imposed on
procedures necessary for workouts comes to W300 billion, a
huge amount that he says has been undermining workout
efforts.

Oh also pointed out that indiscriminate filing of lawsuits
by minor shareholders of Daewoo subsidiaries to block
workout procedures they claim are disadvantageous to them,
and strikes at Daewoo unit labor unions, including the
Daewoo Motor union, have posed major stumbling blocks to
workout efforts.

Commenting on the international auction for the sell-off of
Daewoo Motor, Oh said General Motor has shown the most
active interest in the early stages of the bid, but
recently Ford has shown increasing interest in taking over
the local auto firm. According to Oh, it appears that the
offering price could end up being the main factor in
deciding which firm will win the bid. (Digital Chosun  09-
May-2000)

DAEWOO MOTOR: Only assets to be sold off
----------------------------------------
The government plans to sell off Daewoo Motor assets only,
excluding the debts of the firm, according to Daewoo
Restructuring Steering Committee chair Oh Ho-keun.

Oh, who also heads the government's Corporate Restructuring
Committee, told the Chosun Ilbo Monday that the assets of
the car firm and other automotive industry subsidiaries of
the ailing Daewoo group including Ssangyong Motors, Daewoo
Auto Sales and Daewoo Capital, will be grouped together for
sale to a third party. He also said that the preferred
negotiation partners for the sell-off of Daewoo Motor would
be chosen before the end of June at the latest.

This is the first official announcement from the government
that only Daewoo Motor's assets would be included in the
sell-off deal.  According to Oh, the Korean Asset
Management Corp. will purchase Daewoo Motor's debt at 38%
of their book value subject to due diligence.

Meanwhile, Minister of Commerce, Industry and Energy
(MOCIE) Kim Young-ho made a separate statement recently
that in addition to taking into account the purchase price
being offered, other criteria would be used in selecting
the preferred negotiation partner for the sale of Daewoo
Motor, such as employee retention and the continuation of
partnerships with existing suppliers. (Digital Chosun  09-
May-2000)

SEOUL BANK: Deutsche Bank begins due diligence audit  
----------------------------------------------------
Deutsche Bank has started a due diligence audit of Seoul
Bank as the first step in restructuring the troubled
national bank, a bank spokesman said yesterday.

During the due diligence scheduled for completion in early
July, Deutsche Bank will examine Seoul Bank's key operating
areas and undertake a gap analysis, he said.

Last month, the Financial Supervisory Commission selected
the German bank as a financial and restructuring advisor to
Seoul Bank in an effort to turn around the ailing bank.
(The Korea Herald  10-May-2000)


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

FABER GROUP BHD: Shareholders approve restructuring scheme
----------------------------------------------------------
Shareholders of Faber Group Bhd yesterday approved its
composite scheme of arrangement which entails debt
restructuring and a capital reduction, giving the company a
"five-year window'' to rebuild its operations.

Part of the restructuring scheme calls for Faber to dispose
of some of its assets, but group chairman Datuk Abdullah
Mohd Yusof said this was something that it would start
looking at only in the third year.  All of the company's 11
hotels--nine under the Sheraton chain and two under Merlin-
-were up for grabs, Abdullah said after the company's EGM
in Kuala Lumpur yesterday, but only "at the right price."

While waiting for better offers, he said, Faber intended to
concentrate on improving its hotels' occupancy and room
rates, both of which were beginning to look better, so as
to enhance the hotels' value.

"This is certainly preferable to disposing of these assets
at the 'fire sale' prices offered during the economic
slowdown, which at best represented between 30% and 50% of
the pre-crisis values attributed to the same assets in
1997," said Abdullah.

How many hotels Faber would ultimately need to sell hinges
on how they are valued, although Abdullah mentioned a
combined value of RM1bil yesterday.  To a comment that
Faber would not be able to meet its debt obligations even
if it were to sell all of its hotels, he said: "It's a
matter of valuation."

But under the restructuring scheme which the Corporate Debt
Restructuring Committee helped to broker, Faber would need
to meet its RM1.56bil nominal value bond and loan stock
obligations in five years.  Including interest, it
currently has loans of more than RM900mil outstanding.

"We need to bring the debt to a more manageable level,"
Abdullah said.

The proposed capital reduction would see Faber's share
capital halved to RM162mil comprising 162 million shares of
50 sen each, from RM324mil comprising 324 million shares of
RM1 each.  Abdullah indicated that even if the debt was
double or even three times more than the new share capital,
it would be manageable.

Given Faber's five-year window of opportunity to maximise
its asset value and put itself back on a more sustainable
footing, he said he did not foresee a situation where
Renong Bhd's 60% equity interest in Faber, held via
Cantuman Bahagia Sdn Bhd, would be diluted to less than
10%.

That situation could arise under the proposed restructuring
scheme should Faber not be able to redeem the secured
bonds, and result in creditor bank Bumiputra-Commerce Bhd
ending up with a 56.2% stake in Faber.

"We're not jumping from the boat," said Faber director
Datuk Ikmal Hijaz Hashim, who is with the Renong group.

In the interim, Faber is also banking on its healthcare and
property divisions to restore it to better financial
health.  The healthcare arm under subsidiary Faber Medi-
Serve Sdn Bhd, which still has 12 years of a 15-year
concession to provide support services to 71 government
hospitals, is a 60% contributor to group revenue. (The Star  
10-May-2000)

TIME ENGINEERING: `Fate lies in creditors' hands'- Sapura
---------------------------------------------------------
Telecoms equipment-maker Sapura Group has declared that
creditors of Time Engineering and not Time's directors or
shareholders, must decide the fate of Sapura's bid for a
stake in Time's telecoms business.

"Time is essentially close to liquidation, so anything that
moves the company forward the creditors must be happy
with," a Sapura company official said. "It's only fair that
creditors decide for themselves whether they are happy or
not."

On Monday, Time rejected a proposal by Sapura to buy its
telecoms assets calling it "not acceptable."  Sapura and
Singapore Telecommunications (SingTel), the island nation's
largest listed company, have put in competing bids for
Time's jewel, Time Dotcom.

"This is not for Time shareholders or directors to decide,"
the Sapura official said.

Analysts said Sapura had little choice left but to play
hard ball following Time's rejection.

"It now appears that Sapura's only option is to muster
support of at least 26 per cent of Time's creditors, which
it said it already has, at the June 8 meeting to block
Time's plan," a telecoms analyst said.

Under Sapura's debt-to-equity conversion plan, it would end
up with 40 per cent of Time Dotcom with Time's creditors
holding 39 per cent and Time owning 21 per cent.  Time
said: "The Sapura group proposal proceeds on an enterprise
value of M$5.7 billion (about HK$11.68 billion) and will
result in the company losing control of Time Dotcom."

Under Time's restructuring plan, it values Time Dotcom at
M$8.3 billion and it would end up with 55 per cent against
Sapura's 2.4 per cent.  It also involves SingTel buying
14.5 per cent in Time and 20 per cent in both Time Dotcom,
which controls a 3,600 km fibre-optic network spanning
peninsula Malaysia, and an Internet company, in a deal
worth M$2.2 billion.

Time owns 22 per cent of Renong through holdings which may
leave SingTel with some say in running Renong, Malaysia's
biggest conglomerate with perceived close links with top
political leaders. (South China Morning Post  10-May-2000)

TIME ENGINEERING: Sapura just wants debt settled
------------------------------------------------
The Sapura group will not block Time Engineering Bhd's debt
restructuring scheme at a meeting with creditors on June 8
because it wants its debts repaid, according to sources
close to Sapura.

Sapura, which has garnered support from more than 26% of
Time's creditors, will not want to be "a spoiler without
reason," said one of the sources.  It just wanted to be
paid, to know how and when creditors would be paid, and how
the valuation of Time was made, said the source.

Sapura is one of the major creditors of Time, which has
proposed a scheme to get it out of its mountain of debt
through a settlement in cash, non-cash, an initial public
offering (IPO) and a strategic alliance with Singapore
Telecommunications Ltd (SingTel).

But Sapura is unhappy with Time's proposal because Sapura
would end up with only a 2.57% stake in Time dot.Com, the
company which will become the listed holding company of
Time's telecommunications assets.  Consequently, Sapura has
made a counter-proposal which would see it having a 40%
stake in Time dotCom and none for SingTel. In the Time
proposal, SingTel would take up a 20.59% stake in Time
dotCom.

Sapura insiders said that the company's bid was not
hostile. "We are not hostile bidders at all. We are
proposing an equitable bid," said one of them.

But Time's board of directors has rejected the Sapura bid.
Sapura insiders said that their company's proposal was
clear, especially with regard to how the funds would be
underwritten.  The sources pointed out that up to now, Time
had not mentioned anything about underwriting.

They also questioned the difference in the valuations of
Time's assets by the same valuer, from RM3bil less than a
year ago to RM8.3bil now, even against a backdrop of easier
sentiment for dotcom shares.  Besides the valuation, they
also questioned the almost RM1bil difference between Sapura
and Time's bids to repay creditors.

Meanwhile, Time said it would not be talking to Sapura on
the latter's bid until June 8.  Time would meet Sapura
along with other creditors on June 8, Time dotCom deputy
chairman Datuk Zaidan Hj Othman said at a press conference
after launching a Voice Over Internet Protocol IDD/STD
service for Touch 'n Go cardholders in Kuala Lumpur
yesterday.

Zaidan said there had been no negotiations or talks between
Time and Sapura.  On the proposed deal between Time and
SingTel, he said: "We have to wait until Thursday (the day
a binding agreement is supposed to be signed)."

Time Telecommunications Sdn Bhd chief operating officer Mek
Yam Jusoh said the ongoing events surrounding Time's
restructuring scheme had not affected their firm's
operations.  Operations would continue regardless of what
had happened on the corporate front, she said, adding that
the launch of new products was part of the company's
activities. (The Star  10-May-2000)


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

PHILIPPINE NAT.BANK: Buyers want more due diligence time
--------------------------------------------------------
Prospective buyers of the Philippine National Bank are
asking the government to defer by two weeks the bundled
sale of the bank's assets to allow them to conduct due
diligence.

Finance Undersecretary Cornelio Gison said some of the
bidders want the government to move the deadline so they
can also review a detailed audit of the bank by accounting
giant Sycip Gorres Velayo & Co.  Under the planned joint
sale of assets of the Philippine government and of taipan
Lucio Tan, it was agreed that pre-qualified bidders will be
announced on May 15 and the bids opened on the 26th.

The dates were set on hopes that by May 30, the date of the
PNB's annual stockholders' meeting, a new owner could be
introduced and new officers could be elected.

"The schedule is really too tight but we have to ask Tan if
he would agree," Gison said. "The buyers still want to
check the SGV audit and to conduct their own due
diligence."

The government is disposing its 30-percent stake in PNB,
while Tan is selling his 46-percent holdings in the former
national bank.  The sale also includes the 3.5-percent
stake of the PNB Retirement Fund.

Tan earlier scheduled the sale on May 15 but later agreed
to be more flexible on the date of the bank's
privatization.  Government sources said Tan imposed an
early deadline so that he could sell his stake on his own
and at a higher price, if the bid fails.  Asked if Tan
would reject the extension, Gison said: "Maybe we would ask
the President again to intercede".

Gison said the DoF still wants to come up with a list of
pre-qualified bidders by May 15. But even that deadline
could be extended, he said. (ABS/CBN NEWS CHANNEL  09-May-
2000)

URBANCORP INVESTMENTS: SEC grants debt repreive
-----------------------------------------------
The Securities and Exchange Commission said it granted a
petition by Urbancorp Investments Inc for a 60-day
suspension of debt payments.

The SEC also approved the creation of a rehabilitation
receiver and ordered Urbancorp Investments, which has total
liabilities of 5.83 bln pesos, not to dipose of its
properties.

"Petitioner anticipates that with the rehabilitation plan
it can take advantage of the future opportunities for
growth given the proper support of the concerned parties,"
it said.

Urbancorp Investments is 40 pct owned by Urban Bank Inc,
which was ordered closed by the central bank and placed
under receivership of Philippine Deposit Insurance Corp
last April 26.  (AFX News Limited 09-May-2000)

URBANCORP INVESTMENTS: Receiver appointed
-----------------------------------------
The Securities and Exchange Commission has chosen the
chairman and senior partner of auditing firm Joaquin
Cunanan and Co, Corazon de la Paz, as the interim receiver
for Urbancorp Investments Inc.  The SEC gave no other
details.

Urbancorp Investments is 40 pct owned by Urban Bank Inc
which was ordered closed by the central bank and placed
under the receivership of state-run Philippine Deposit
Insurance Corp on April 26.  (AFX News Limited  10-May-
2000)


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

ASIAN DEVELOPMENT BANK: US refuses to mull new funding
------------------------------------------------------
The US set itself on a collision course with Asia last
Sunday by refusing to contemplate fresh capital injections
for the Asian Development Bank (ADB).

While all other ADB shareholders want to study whether the
bank needs to strengthen its capital base in the wake of
Asia's 1997 financial crisis, a senior US Treasury official
said examining the issue would be a distraction.

"Fundamentally, we do not foresee a need, or the prospect
of broad support, for additional capital resources for this
bank," said Edwin Truman, Assistant Secretary at the
Treasury and leader of the US delegation to the three-day
ADB annual meeting.

The American refusal to even consider new funding for the
financially-strapped ADB comes amid growing scepticism in
the US Congress about the roles of multilateral
institutions like the International Monetary Fund and the
World Bank.  Washington also initially did not offer
assistance to key Asian countries like South Korea or
Thailand when they plunged with the rest of the region into
their worst economic crisis in decades from July 1997.

Japan, on the other hand, declared at the meeting that it
supported a commencement of a study on the ADB's future
resource requirements while taking into account its
increasing outstanding loans and aggravations arising from
financial changes after the 1997 currency crisis and the
bank's future lending strategy.

Japanese Finance Minister Kiichi Miyazawa said his country
was also prepared to make a contribution of 10 billion yen
($10 million) by setting up a fund for poverty reduction to
support the ADB's fight against poverty.

Truman said the US believed that further assistance to
emerging economies must be tied to the opening up of access
to their markets.  The US, meanwhile, welcomed cautiously
the landmark currency cooperation agreement between 13 East
Asian nations, or the so-called Chiang Mai Initiative, to
fight future economic crises.

Truman told a news conference that Washington supported the
idea in general but was awaiting the details. As long as
the details enable a quick response to financial and
economic problems, he said, then "they are to be
commended."  (Business Day  09-May-2000)

BANGKOK METRO.BANK: Sale to HSBC nearly wrapped up
--------------------------------------------------
Final conditions for the sale of Bangkok Metropolitan Bank
should be completed this week, M.R. Chatumongol Sonakul,
governor of the Bank of Thailand said yesterday.

British giant HSBC will reportedly pay 40 billion baht for
a 75% stake in BMB, seized by regulators in early 1998.
M.R. Chatumongol said the last obstacle to the sale hinged
on BMB's 60% stake in Bangkok Metropolitan Life Assurance.
The Commerce Ministry restricts foreign bank holdings in
life insurance firms to 25%.

HSBC had asked the central bank and the Finance Ministry to
co-ordinate talks with insurance regulators at the Commerce
Ministry about granting an exemption to the shareholding
rule.  If the Commerce Ministry refuses to grant the
exemption, one option would be for the central bank's
Financial Institutions Development Fund to purchase the
shares in the insurer from the bank before the
privatisation was completed.

Chaktip Nitibhon, a central bank assistant governor, said
later yesterday that the development fund would purchase
the insurance firm and hold a separate auction later.
"We need to buy the unit so the deal with HSBC can be
concluded," he said.

For regulators, this would actually lead to capital gains,
as the development fund would profit from the difference
between the 10- baht par value sale price and the insurer's
higher market value. An earlier sale of Radanasin Bank to
Singapore's United Overseas Bank was handled in a similar
way, with the development fund taking over Radanasin's
finance subsidiary Radanatun for a separate sale.

M.R. Chatumongol said that regardless of whether BMB would
be sold with the insurance subsidiary or not, the final
price paid would remain near 40 billion baht. Regulators
would enter a loss-sharing agreement for bad loans for five
years with HSBC. The central bank estimates total losses
from the sale after five years at about 150 billion baht.
(Bangkok Post  09-May-2000)

EASTERN PRINTING PLC: Rehab hearing date set
--------------------------------------------
Eastern Printing Public Company Limited, through Weera
Louwitawas, Managing Director, has reported to the Stock
Exchange of Thailand that after submitting a petition for
rehabilitation with the Central Bankruptcy Court on May
2nd, 2000 case No. Black 334/2543, the Court has set a
hearing date on May 29th, 2000 at 9:00 A.M. (Stock Exchange
of Thailand  08-May-2000)

GSS ARRAY TECHNOLOGY: Seeks delisting for tender offer
------------------------------------------------------
GSS Array Technology Public Company Limited, through
Mr.James Menges, and Mr. Boon Hoe, Directors, have
submitted an application for delisting of shares with the
Stock Exchange of Thailand (SET).

At this time, the company has 21,124,400 ordinary shares,
with par value of Baht 10 each, totalling Baht 211,244,000
million.
The share became listed securities on the Exchange in 1989.
The latest trading price: Baht 147 per share on April 28,
2000. 1.3.3 Offered to - on - .

Approval from the shareholders meeting to delist the shares
was obtained April 28, 2000. The number of all the
shareholders 853, holding, 21,124,400 shares. The number of
small shareholders each of whom holds shares of not more
than 0.5% of the paid-up capital but not less than one
board lot : 796, holding
3,897,195 shares, representing 18.63% of the paid-up
capital.

The number of shareholders who attended the meeting in
person : 31.  The number of shareholders who attended the
meeting by  proxy: 175, holding 17,913,804 shares,
representing 84.80 % of the paid-up capital.  The number of
shareholders who approved the delisting of shares : 175,
holding 17,913,804 shares, representing 84.80 % of the
paid-up capital.

Among the reasons and facts concerning delisting of shares
are that it is a condition of the pre-tender agreement, and
in order for the tender to occur, the shareholders must
vote to de-list.
ACT Manufacturing Inc. desires to own 100% of the Company's
shares, which is in accordance with the majority of
acquisitions done by USA companies.

ACT Manufacturing Inc. is currently listed on the NASDAQ
stock market in the USA, which enables ACT Manufacturing
Inc. to raise equity capital very effectively and
efficiently, in terms of valuation and timing. This listing
is adequate for ACT Manufacturing Inc. to meet its current
capital raising
requirements.

A continued listing of the Company once it became a
subsidiary of ACT Manufacturing Inc. would not benefit the
shareholders as the number of shares which potentially
could be listed would be so small that the lack of
liquidity could impact valuation.

A continued listing of the Company once it became a
subsidiary of ACT Manufacturing Inc. requires additional
resources in terms of time and money, which would not be
financially justified.
Name of independent financial advisor: BNP Prime Peregrine
Securities (Thailand) Limited. ACT Manufacturing Inc. will
make a tender offer when the Stock Exchange of Thailand
grants approval in principle on this application for
delisting of shares. The tender offer will be made in
accordance with the condition and time as stipulated by the
relevant rules and regulations).

5. Top ten major shareholder as of the date of shareholders
meeting at which the resolution to delist the Company's
shares was adopted (April 7, 2000):

Name/Nationality/Amount of Shareholding/Share percentage
held

1.Mr.Gary American - 2,101,036 9.95
Mason Stickles

2.Albouys British - 1,697,300 8.03
Nominees Ltd.

3.Bermuda Singaporian - 1,355,700 6.42
Trust (Singapore) Limited

4.Bank of Tokyo Japanese - 1,250,000 5.92
- Mitsubishi (Luxembourg) S.A.

5.Merrill Lynch American - 1,212,218 5.74
Pierce Penner & Smith Inc.

6.State Street British - 868,900 4.11
Bank and Trust Company, for London

7.Mr. Fred B. American - 715,860 3.39
Hopkins

8.Morgan Stanley American - 598,200 2.83
& Co International Limited

9.Warburg Dillon Thai - 594,600 2.81
Read Securities Company Limited Thai

10.ABN Amro Asia Singaporian - 481,300 2.28
Service (Singapore) Pte Ltd


6. Board of Directors of the Company on April 28, 2000

Name/Position/Shareholding Percentage
1. Mr. Thomas Epstein Chairman -
2. Mr. Fred B. Hopkins Vice-Chairman 3.39
3. Mr. Robert E. Zinn Director 0.85
4. Mr. James A. Menges Director 1.25
5. Mr. Boon L. Hoe Director 0.69
6. Mr. Douglas E. Barnett Director 0.07
7. Mr. Supawit Wuthi-udomlert (Independent Director)
8. Mr. Nappun Muangkote (Independent Director)
(Stock Exchange of Thailand  08-May-2000)

KRUNG THAI BANK: Restructuring smaller-scale loans
--------------------------------------------------
Krung Thai Bank expects to restructure bad loans totalling
90 billion baht to small-scale clients within three years.

Pairote Vorapas, senior executive vice-president, said the
goal was to restructure at least 35% of its small-scale
non-performing loans, or 30 billion baht, by the end of
this year.  Small loans are defined as customers with
outstanding loans below five million baht. Around 40% of
Krung Thai's total consumer loan portfolio is made up of
housing loans.  (Bangkok Post  10-May-2000)

RAIMON LAND PLC: Reports restructuring progress to SET
------------------------------------------------------
Raimon Land Public Company Limited (Raimon), through Nigel
J. Cornick, Director, reports on the status of its debt
restructuring.  Following a presentation of the company's
restructuring plan to financial creditors on 27 January
2000 the company formally opted to join the CDRAC process
for debt
restructuring.

The company entered CDRAC on 2nd February 2000 and since
that date PricewaterhouseCoopers FAS Limited, Raimon's
independent financial advisor, has been working closely
with Raimon's Steering Committee of financial creditors to
prepare a Term
Sheet which will form the basis of a CDRAC vote for the
proposed restructuring of Raimon.

The Steering Committee has responded positively to the
draft Term Sheet and there are now only a small number of
minor issues to be resolved by the Steering Committee prior
to calling the CDRAC vote. We currently anticipate that the
CDRAC vote will take place at the end of May, following a
debenture holder meeting , required to change the terms of
the debentures to reflect the Term Sheet and to elect one
debenture holder to vote on behalf of
all debenture holders at the CDRAC vote.

Under the Term Sheet, an investor will inject new equity
and the creditors would agree to restructure their debt.
The plan includes the following components:  Transfer of
Raimon's real property assets to the secured creditors,
reducing the secured debt by an amount equal to the current
open market value; combination of debt write-off and debt-
to-equity conversion; cash injection by the Investor; and
some up-front cash to be paid to unsecured creditors out of
the investors cash injection.

The debt covered by the CDRAC vote accounts for
approximately 90% of Raimons' debt to Financial Creditors.
The majority of the balance of debt is held by the Asset
Management
Corporation (AMC) who have agreed to a restructuring plan
and it is anticipated the final agreement will be signed
between Raimon Land and the AMC by the 30th May.

The company is in negotiation with several potential
investors, including some substantial international groups
who are interested in developing their real estate business
in Thailand
through a listed vehicle. These negotiations will not be
formalised prior to the creditors' CDRAC vote. Maintaining
Raimon Land's listing will be critical to securing the
Investor which will benefit Raimon Land, Shareholders
creditors and employees.  (Stock Exchange of Thailand  09-
May-2000)

THAI TEL.& TEL.: Suspended from trade                      
-------------------------------------                      
Thai Telephone and Telecommunications Plc has been
suspended from trade following press reports the company's
request to manage its own debt restructuring plan has been
rejected by the Bankruptcy Court.  The Stock Exchange of
Thailand said it has requested official confirmation of
the reports from the company.   

Meanwhile, Thai Telephone & Telecommunication Plc said the
Central Bankruptcy Court has ordered the company's
creditors to meet on May 29 to select a rehabilitation
planner.

In a statement to the Stock Exchange of Thailand, Thai
Telephone said the court has also ordered the company's
rehabilitation according to the terms of its petition
submitted April 10 as no objections were received from
its creditors on the matter.

Earlier, the Telephone Organisation of Thailand had filed
an objection to the appointment of a rehabilitation
planner, even if most of the company's major creditors
agreed to a planner being appointed. TOT is one of the
company's creditors.

Thai Telephone added it has been appointed by the court as
interim administrator for its business operations. At 11:48
am, after being allowed to resume trading, Thai Telephone
was up 0.10 baht at 8.1 on trade of 10,359 lots.  (AFX News
Limited  09-May-2000)


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

Troubled Company Reporter -- Asia Pacific is a daily
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Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
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Jover and Cristina Pernites, Editors.

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

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