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                            A S I A   P A C I F I C

             Friday, May 19, 2000, Vol. 3, No. 98

                                   Headlines


* A U S T R A L I A *

AVONWOOD HOMES: Builders in rescue bid
CHRISTMAS ISLAND CASINO: Developer sues businessman
GREYHOUND: McCafferty's drops its bid
PYRAMID BUILDING SOCIETY: Bankrupt jailed for credit fraud
REINSURANCE AUSTRALIA CORP.: New CEO to lead sell-off


* C H I N A  &  H O N G  K O N G *

CHINA EVERBRIGHT TECHNOLOGY: Stems red ink at $149.7M
CHINAFAX LTD: Facing winding up petition
HAPPY SYMBOL LTD: Facing winding up petition
SINA.COM: Loss hits US$12m in quarter
SUNDAY INVESTMENTS LTD: Facing winding up petition
YCK (HOLDINGS) LTD: Facing winding up petition


* I N D O N E S I A *

PT BARITO PACIFIC GRP: IBRA wants rehab of largest debtors
PT DHARMALA SAKTI SEJAHTERA: Creditor vote May 31
PT TEXMACO GROUP: IBRA wants rehab of largest debtors
PT WICAKSANA OVERSEAS INT'L: Debt rehab deal told to JSX


* J A P A N *

SEKISUI CHEMICAL CO.: Posts 27B Yen group net loss in FY99


* K O R E A *

CHO HUNG BANK: Debate over drawing foreign investment
DAEWOO CORP.: Expects buyout talks to conclude soon
DAEWOO GROUP: Rehab delays raise fears of crisis trigger
KOREA AIR: Posts 1st quarter loss


* M A L A Y S I A *

ESSO MALAYSIA BHD: Posts unaudited RM5.7M after-tax loss
NALURI BHD: Creditors give the go ahead to restructure


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

PHILIPPINE NAT.BANK: Tycoon, Gov't losing $ each delay
PHILIPPINE NAT.BANK: Revenue drops, posts Q1 loss
UNIWIDE HOLDINGS: Loss narrows
URBANCORP.: SEC determined to cancel license
VICTORIAS MILLING CO.: Files amended rehabilitation plan


* T H A I L A N D *

ABICO HOLDINGS: Posts 1st quarter loss
AIG FINANCE (THAILAND): Posts 1st quarter loss          
BANK THAI: Posts 1st quarter loss                     
BANGKOK BANK: Posts 1st quarter loss                       
BANGKOK METRO.BANK: Posts 1st quarter loss                 
BATA SHOE OF THAILAND: Posts 1st quarter loss             
DBS THAI DANU BANK: May be forced to off-load bad debts
DBS THAI DANU BANK: Posts 1st quarter loss                 
L.P.N. DEVELOPMENT: Posts 1st quarter loss                  
PRASIT PATANA: Posts 1st quarter loss                
PREMIER ENTERPRISE CO.: Rehab petition accepted
SAHAVIRIYA OA: Posts 1st quarter loss                      
SIAM GENERAL FACTORING: Posts 1st quarter loss             
SIAM STEEL INT'L: Posts 9-month loss                   
SRITHAI SUPERWARE: Posts 1st quarter loss                  
SRIVARA REAL ESTATE GROUP: Posts 1st quarter loss           
TANAYONG: Posts loss                                    
THAI FISHERIES: Posts 1st quarter loss                   
THAI MILITARY BANK: Set to wrap up fund-raising efforts
THAI PETROCHEM.INDUSTRY: Drawing up new rehab plan
THAI PETROCHEM.INDUS.: Posts 1st quarter loss              
TUNTEX (THAILAND): Posts 1st quarter loss                    
UOB RADANASIN BANK: Posts 1st quarter loss


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

AVONWOOD HOMES: Builders in rescue bid
--------------------------------------
Twenty-three builders are offering to take over the
contracts of Brisbane home buyers left stranded by the
collapse of Avonwood Homes.

The company, one of the largest home building firms in
Australia, ollapsed in April 2000 with $A13m in debts. The
move left 562 homes partly built and 241 people with
unfulfilled contracts. Liquidator Paul Pattison told 30
Brisbane victims on mid-May 2000 that he is seeking other
contractors to take on the work, receiving 23 bids in
Brisbane and 67 in Melbourne.

Pattison said parties who choose not to get a new builder
have access to up to $A100,000 in building insurance.
(World Reporter  17-May-2000)

CHRISTMAS ISLAND CASINO: Developer sues businessman
---------------------------------------------------
In May 2000, Christmas Island casino developer, Frank
Woodmore, is suing Indonesian businessman, Robby Sumampow,
over a share deal.

The 1997 deal involves the sale of shares in Christmas
Island Resorts (CIR), in which Woodmore's company, Mercator
Property Consultants, owns ten per cent and Sumampow holds
the other 90%.  Mercator is alleging that Sumampow
conditionally agreed to buy its ten per cent for $A5.1m,
payable in two instalments.

One small payment was made on 24 December 1997 and another
in March 1998, but when the rest was not paid in July 1998
as agreed, Woodmore had Herbert appointed receiver-manager,
and later liquidator when it was revealed that CIR,
recently sold to Sydney technology company, Softstar, for
$A5.7m, had debts of $A107m.

Woodmore is claiming $A4.5m plus interest from Sumampow,
who is counter-claiming the return of his $A600,000. (ABIX
- World Reporter  17-May-2000)

GREYHOUND: McCafferty's drops its bid
-------------------------------------
Family-owned coachline McCafferty's Holdings has called off
its hostile takeover bid for rival Greyhound Pioneer.

The withdrawal comes only a day after the company received
an extension on the deadline for lodging its bidder's
statement.  In a statement yesterday, McCafferty's said it
had advised Greyhound and the Australian Securities and
Investments Commission it would not proceed with its bid.
In a letter to ASIC, McCafferty's lawyers, Hewlett & Co,
said the circumstances surrounding the takeover bid had
changed because Greyhound had sold its core assets.

"These changed circumstances are beyond our client's
control, and were circumstances not known to our client as
at the date of the announcement of its takeover bid," the
letter said.

The offer of one McCafferty's share for two Greyhound
shares could not be valued because it is being made through
a company formed in early March with unspecified assets.
Despite the offer, Greyhound has persisted with the
proposed sale of its coach division to New South Wales
regional player Premier Motor Services.

A June 16 meeting of shareholders will be held to vote on
the offer from Premier associate Nowra Coaches. The offer
for the coach business is believed to be $10 million, with
another $1.7 million for six coaches.  The messy takeover
has been fought mainly by the companies' lawyers after
McCafferty's demanded early in its bid that Greyhound stop
making "misleading and erroneous" statements." (The Age  
18-May-2000)

PYRAMID BUILDING SOCIETY: Bankrupt jailed for credit fraud
----------------------------------------------------------
A bankrupt Brisbane businessman will spend more than two
years in jail for changing his name to obtain $A108,000 in
credit.

It was revealed in Brisbane District Court on 15 May 2000
that Milan Tusek was declared bankrupt in 1994 under his
original name of Michael Kralz. He reportedly changed his
name to Tusek in 1995 to obtain loans, correctly believing
that he would avoid the normal checks made by financial
institutions and company controllers.

After changing his name, Tusek managed four different
companies over three years, which lost or incurred debts of
$A75,000. Tusek's lawyer says his client hit trouble with
the collapse of the Pyramid Building Society. Tusek pleaded
guilty to attempted fraud as well as to a number of
bankruptcy charges.  (World Reporter  16-May-2000)

REINSURANCE AUSTRALIA CORP.: New CEO to lead sell-off
-----------------------------------------------------
Former GIO financial chief, Geoff Vines, will take over
from his old boss as CEO of Reinsurance Australia
Corporation Limited. At the beleaguered company's annual
general meeting on 15 May 2000, chairman, Peter
Cadwallader, blamed a tough year in the industry for 1999's
$A467 million loss.

The board was quizzed over last year's appointment to ceo
of Nick Steffey, who resigned after only one year in the
post. Vines has been managing ReAC's run-off since
February.  The company will stop writing new business and
will liquidate its assets and liabilities. How shareholders
will fare from the run-off will not be known until the end
of 2001. (World Reporter  16-May-2000)


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

CHINA EVERBRIGHT TECHNOLOGY: Stems red ink at $149.7M
-----------------------------------------------------
China Everbright Technology stemmed some red ink with its
net loss of HK$149.72 million in the year to December 31,
compared with a loss of HK$157.76 million a year earlier.

Last year it was hit by a provision for diminution in value
of its investment in an associate. Turnover of the computer
keyboard and timepieces seller rose to HK$690.74 million,
up 19.2 per cent on a year earlier.  A write-off of HK$22.5
million in inter-branch receivables contributed to the
operating loss of HK$62.97 million.

The company said profit margins of the group's
manufacturing businesses shrank in an increasingly
competitive market. A computer keyboard production plant in
Guangdong, acquired in 1997, failed to reach a vendor-
guaranteed of an after-tax profit of at least HK$22
million. China Everbright said if the profit guarantor
dropped its technological, financial and marketing support,
business operations may be affected.

Meanwhile, the company said it had made full provision, via
an asset swap last year, for its 38-per-cent investment in
Wuxi Taide IT-Land Development to develop a zone for high-
technology and IT. However the project was slow due to the
controlling shareholder undergoing management changes and
failing to contribute sufficient working capital.

Everbright said it was retreating slowly from manufacturing
and making a foray into the e-commerce market - developing
an on-line auction platform. (South China Morning Post  18-
May-2000)

CHINAFAX 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 Lui
San Wa for the winding up of Chinafax Limited. A notice of
legal appearance must be filed on or before May 30.

HAPPY SYMBOL 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 Yiu
Shuk Ling for the winding up of Happy Symbol Limited. A
notice of legal appearance must be filed on or before June
20.

SINA.COM: Loss hits US$12m in quarter
-------------------------------------
Nasdaq-listed Sina.com's actual net loss increased ninefold
to US$12.1 million for the quarter to March 31, compared
with US$1.3 million in the pervious corresponding period.

Excluding non-cash charges for amortisation of intangibles
and stock-based deferred compensation and stock accretion
after the initial public offering on the Nasdaq market, the
pro forma net loss tripled to US$6.7 million during the
period, compared with US$2.1 million in the previous
corresponding period.

This brought to US$18.2 million the leading Chinese
Internet portal's net loss for the nine months to March 31,
representing a widening of net loss by 290 per cent.
However, the portal said net revenue surged 247 per cent to
US$3.6 million during the period, compared with US$1
million in the previous year. This brought nine-month
revenues to US$8.4 million, representing a growth of 216
per cent.

Advertising revenues for the third quarter surged 784 per
cent to US$3.1 million, compared with US$300,000 in the
previous year.  Pro forma fully diluted net loss per share
for the third quarter was 20 US cents, while nine-month net
loss per share was 60 US cents.  Sina which listed on the
Nasdaq on April 13, becoming the first mainland Internet
company to be listed on the technology-heavy US board.  

"We have been focusing our execution on global branding,
localised products and services, and sustainable business
model," said Sina chief operating officer Daniel Mao. "We
are now extending our reach into emerging platforms of
wireless and broadband, which we believe will contribute
significantly to the growth of Internet usage in Greater
China," Mr Mao said.  (South China Morning Post  18-May-
2000)

SUNDAY INVESTMENTS 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 Tang
Siu Ling for the winding up of Sunday Investments Limited.
A notice of legal appearance must be filed on or before
June 20.

YCK (HOLDINGS) 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 Yuen
Cho Kwok for the winding up of YCK (Holdings) Limited. A
notice of legal appearance must be filed on or before June
20.


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

PT BARITO PACIFIC GRP: IBRA wants rehab of largest debtors
PT TEXMACO GROUP: IBRA wants rehab of largest debtors
----------------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) said it
hoped to restructure 35 percent of Rp79.08 trillion
(US$9.23 billion) debts of its 21 largest debtors by the
end of next month.

IBRA deputy chairman Arwin Rasyid the restructuring target
was included in the latest letter of intent to be signed
with the International Monetary Fund (IMF) early June.

The 21 debtors include the Texmaco Group, whose debt of
Rp16.52 trillion were transferred to IBRA only on March 13.
Texmaco topped the list of the obligors relegating Barito
Pacific Group which has a debt of Rp9.8 trillion. Based on
its monthly report in April, IBRA already received Rp31
billion in partial payment of the total debts from the
large debtors. (Asia Pulse  16-May-2000)

PT DHARMALA SAKTI SEJAHTERA: Creditor vote May 31
-------------------------------------------------
A group of 32 creditors of PT Dharmala Sakti Sejahtera will
meet again on May 31 to vote on whether to seek a
bankruptcy ruling against Dharmala, supervisory judge
Syamsudin Manan Sinaga said.

He said Dharmala Sakti presented its debt restructuring
plan at today's creditor meeting, but none of the creditors
offered a response.

"There is no indication whether the creditors agree or
reject the proposal," Sinaga said.

Among the 32 creditors are the Indonesian Bank
Restructuring Agency (IBRA), Hanil Bakrie and ABN Amro
Bank.  He said ABN Amro has requested Dharmala to revaluate
the asset value of its unit PT Dharmala Manulife.
Dharmala has estimated Manulife's asset value at around 500
bln rupiah.  Dharmala Sakti said its own obligations at
end-December totaled 639 bln rupiah and 123.8 mln usd plus
250 bln rupiah in official guarantees to subsidiaries.
It added it may take on 1.063 trln rupiah owed by one of
its units, PT Bank Dharmala.  (AFX News Limited  17-May-
2000)

PT WICAKSANA OVERSEAS INT'L: Debt rehab deal told to JSX
--------------------------------------------------------
PT Wicaksana Overseas International Tbk started the process
of debt restructuring in October 1998, with the signing of
Letter of Undertaking by WOI and Terms of Reference by the
creditors. Steering Committee ("SC") was formed and chaired
by Citibank, M.A., and includes American Express Bank Ltd.,
PT ANZ Panin Banjk (later was taken over by another
creditor), PT Bank Fuji Internasional Indonesia. The
Hongkong and Shanghai Banking Corporation Limited, PT ING
Indonesia Bank and PT Rabobank Duta Indonesia.

In December 1998 PricewaterhouseCoopers ("PWC") was
appointed to do review on WOI. The report was distributed
to all creditors in January 1999. Based on that report, WOI
and its Financial Advisor, Indo-Sing Business Advisory
("ISBA") presented its first restructuring proposal to the
creditors on February 9, 1999.

Negotiations and meetings were held in the following
months, and the second proposal was presented on May 25,
1999. ON August 23, 1999, SC presented its counter proposal
to WOIO.

Intensive negotiations and discussions were conducted until
November 1999 by WOI, SC, and ISBA. Most discussions were
very constructive, as all parties involved were very
professional and supportive of the restructuring effort. On
November 26, 1999. SC and WOI signed a Memorandum of
Unterstanding ("MOU").

Total restructuring obligations of WOI (excluding
subsidiaries) is 5130,326,138. This amount was extended by
20 foreign and joint venture banks and one local financial
institutions.

1. PT Andalan Artha Advisindo Sekurites
2. ABN Amro Bank N.V.
3. American Express Bank Ltd.
4. Bank Brussels Lambert S.A.
5. PT Bank Credit Lyonnaise Indonesia
6. Pt Bank Finconesia
7. PT Bank Fuji International Indonesia
8. Commonwealth Bank of Australia
9. Citibank, N.A.
10. Deutsche Bank AG
11. The Hongkong and Shanghai Banking Corporation Limited
12. PT Indosuez Indonesia Bank
13. PT ING Indonesia Bank
14. Keppel TatLee Bank Limited
15. Lazard Freres & Co. LLC
16. PT Rabobank Duta Indonesia
17. The Sakura Bank, Limited
18. The Sanwa Bank, Limited
19. Standard Chartered Bank
20. PT Tokai Lippo Bank
21. The Yasuda Trust & Banking Co. Ltd.
(Jakarta Stock Exchange  16-May-2000)


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

SEKISUI CHEMICAL CO.: Posts 27B Yen group net loss in FY99
----------------------------------------------------------
Sekisui Chemical Co. (4204), a major Japanese provider of
prefabricated houses, said Wednesday it suffered a
consolidated net loss of Y27.18 billion in the fiscal year
ended March, worse than the year-earlier loss of Y6.50
billion.

That was despite a 1.3% growth in sales to Y920.04 billion,
and an operating profit of Y6.79 billion, compared with a
loss of Y3.63 billion a year earlier.  Sekisui Chemical
said the group net loss resulted mostly from the special
losses it posted, totaling Y29.06 billion. That included a
Y20.95 billion loss related to a Y94.8 billion net loss at
affiliate Sekisui House Ltd. (1928).

Sekisui Chemical included only as much of the affiliate's
net loss as is proportionate to the size of its stake.
Sekisui Chemical holds about a 22% stake in Sekisui House.
The company said housing orders fared well given the
government's measures to encourage potential home buyers.
But the beneficial impact tapered off after November,
causing a slowdown in orders, it said.

Although sales gained on year, the value of orders it
secured in the housing business fell 3.7% to Y447.69
billion for the just-ended term. Meanwhile, the backlog of
orders plunged 16% on year to Y182.32 billion.  On a parent
basis, Sekisui Chemical said its pretax profit doubled to
Y7.37 billion. Sales edged up 0.6% to Y599.34 billion.

For the current fiscal year ending March 2001, the company
is predicting a consolidated net loss of Y30 billion, as it
will write off unfunded retirement and pension obligations
totaling Y63.4 billion in a lump sum. It expects
consolidated pretax profit to come to Y18 billion on sales
of Y930 billion.  Parent pretax profit is pegged at Y10
billion with sales of Y570 billion. It estimates a parent-
only net loss of Y27 billion. (Nikkei  17-May-2000)


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

CHO HUNG BANK: Debate over drawing foreign investment
-----------------------------------------------------
A debate is brewing over Cho Hung Bank's announced move to
attract $500 million in investment from Cerberus Group, a
private U.S. investment fund.

In a press release, Cho Hung said Cerberus will buy a 14-
percent stake after the bank's bad loan problem is
resolved.  Cho Hung said, however, that the investment is
contingent upon state approval. The government is the
largest shareholder in the bank.

The Financial Supervisory Commission (FSC) spent no time to
rein in the move, citing the current banking law banning
anyone from owning over 4 percent of a commercial bank.
However, the law grants an exemption of the limit only for
an outstanding foreign financial institution with healthy
financial structure and high international credibility.

For example, Goldman Sachs last year became the largest
stakeholder in Kookmin Bank, one of the few healthy
commercial banks in Korea.  The 4-percent limit also does
not apply when a commercial bank is targeted for
restructuring and consolidation. A case in point is the
acquisition of the controlling stake in Korea First Bank by
U.S. investment specialist Newbridge Capital.

The FSC is negative towards private investment funds like
Cerberus because their financial expertise is questionable,
their investment shows mostly a short-term pattern and
corporate information is vulnerable to leakage.  The
government thus believes capital investment by private
funds is acceptable only if the exacerbation of insolvency
affecting a specific domestic financial institution makes
it hard to locate appropriate foreign financiers.

"Cho Hung is complying with its pledge to improve financial
health," an FSC source said. "Whether or not the bank's
capital increase is required should be reviewed again only
after its problem loans are resolved."

Banking sources are blasting the government for obsessing
with a fanciful theory that renowned banks are the best
among financial institutions.

"Even if a fund brings in short-term capital, there will be
no adverse side effects if the short-term sale of stakes is
banned and various options are added," one banker said,
adding that the FSC intends to hold onto its regulatory
power by exploiting the legal requirement.

Sources in the industry agree that the government's stand
is basically characteristic of an "armchair administration"
which is not based on a sense of reality. (The Korea Herald  
18-May-2000)

DAEWOO CORP.: Expects buyout talks to conclude soon
---------------------------------------------------
A top official of Daewoo Corp. said yesterday that the
company will be able to secede from the Daewoo Group by
September if the buyout negotiations with foreign creditors
conclude by July.

Lee Tae-yong, president of Daewoo Corp., also said his
company, the flagship unit of the collapsed Daewoo Group,
was focusing efforts to graduate from the ongoing workout
program by late 2003, about a year earlier than scheduled.

"All procedures for separation from the Daewoo Group will
be completed by late July as cash buyout talks with our
foreign creditors are likely to conclude in a few weeks,"
Lee told reporters.

Despite the two-month delay of cash buyout talks with
foreign creditors, he said, Daewoo Corp. will be able to
start afresh as a new trading company by September. On top
of that, he said, his company might graduate from the
ongoing debt workout program at an early date, citing
speedy improvements in business performance.

Lee said that Daewoo Corp. turned over 2.11 trillion won in
revenues in the first quarter of this year, a very
encouraging performance compared with its original target
of 1.47 trillion won.  Daewoo Corp. has set its revenue
target at 9.2 trillion won, exports at $5.1 billion and
operating profits at 86.6 billion won, respectively, for
the whole of the year.

In particular, Lee said, Daewoo Corp. posted 21.4 billion
won in operating gains during the first quarter, a 315
percent increase from the target.  He said that the better-
than-expected performance augurs well for its workout
efforts because it came when new business funds had not
been funneled into the company for four months.  The first-
quarter achievements will help clear worries about the
company's restructuring progress, he said.

Meanwhile, the top Daewoo official unveiled a plan to
downsize the company's 58 overseas branches and a greater
number of Daewoo-invested corporations as part of efforts
to enhance the efficiency of the company's business setup.
He said that Daewoo Corp. was negotiating with creditor
banks over the plan.

Lee said Daewoo Corp. plans to slim down a third of the
foreign operations, mostly Daewoo-financed organizations,
adding that the downsizing will include sale and clearance.
(The Korea Herald  18-May-2000)

DAEWOO GROUP: Rehab delays raise fears of crisis trigger
--------------------------------------------------------
The stalled restructuring of the bankrupt Daewoo Group's 12
key affiliates is threatening to drag the entire economy
into another crisis, analysts warned yesterday.

Indifference from the government and the loss-sharing
disputes among creditors, labor and minor shareholders have
all combined to hamper efforts to turn around the debt-
heavy Daewoo companies, said the analysts.  Some economists
are even starting to draw parallels between the current
circumstances surrounding Daewoo and the protracted
settlement of Kia Motors' bankruptcy, which helped fuel an
unprecedented economic crisis in late 1997.

Last August, the government and creditors decided to rescue
12 of the group's 30-odd subsidiaries and put them under a
debt-rescheduling accord. Nine months later, however, the
restructuring efforts have made little progresses. To make
matters worse, the debt volume at the 12 troubled companies
has snowballed, while their business infrastructures at
home and abroad are rapidly collapsing.

In particular, deadlocked restructuring efforts at the four
flagship units - Daewoo Motor, Daewoo Corp., Daewoo
Electronics and Daewoo Heavy Industries - are putting
additional wrinkles on the increasingly shaky Korean
economy.

"The biggest reason for the stalemate is that both creditor
institutions and minor shareholders are determined to
minimize their losses from the Daewoo bankruptcy and fully
redeem their Daewoo-related investments," said an analyst.
"In the case of a failure in the restructuring of the
Daewoo companies which hold about 70 trillion won ($63.6
billion) in debts, local financial institutions and
international confidence in Korea's economy, will be dealt
a disastrous blow."

Daewoo Electronics, for instance, earned 25 billion won on
turnover of 885.8 billion won in the first quarter of this
year. But even the modest quarterly profit is short of
servicing the company's total debt of 5 trillion won. New
investments aside, new product development and efforts to
lure foreign capital have all been suspended. Worse yet,
creditors' attempts to make debt-for-equity swaps are being
stubbornly resisted by minor shareholders afraid of seeing
their stock values eroded.

Similarly, Daewoo Heavy Industries' efforts to break up
into two new entities - shipbuilding and heavy equipment
manufacturing - have been opposed by minor shareholders
clamoring for a 50 percent stake in the new companies. The
break-up dispute has in turn hampered efforts to attract
foreign capital into the heavy industries unit which has
about 10 trillion in debts.

Daewoo's five automobile-related operations have also been
battered by creditor-to-creditor disputes over loss sharing
and capital provision, and strikes by unionists opposed to
possible foreign takeover of their companies. In the case
of Daewoo Corp., first-quarter exports crashed by 60
percent to $1.2 billion, while overseas buyers,
subcontractors and even company employees are rapidly
defecting from the company.

Against this backdrop, Oh Ho-geun, chairman of the Daewoo
Group Restructuring Committee, recently warned: "Due to
lack of support and cooperation from the concerned parties
and resistance from minor shareholders, Daewoo's
restructuring efforts are at risk of collapse."

Meanwhile, local economists are calling for a more active
role by the government to swiftly settle the market jitters
over the Daewoo crisis.  Choi Gong-pil, a researcher at the
Korea Institute of Finance, warned that unsuccessful
restructuring at Daewoo units is certain to have adverse
effects on other local conglomerates.

"Despite some short-term shocks, Daewoo firms with little
chance of turnaround should be led to outright
liquidation," he said.

Prof. Choi Jong-pyo of Kunkook University also said that at
the time of 1997 Kia crisis, the government officials'
reluctance to take extreme measures, such as liquidation
and layoffs, contributed to the economic tragedy. (World
Reporter  16-May-2000)

KOREA AIR: Posts 1st quarter loss
---------------------------------
South Korea's largest airliner, Korean Air, said it posted
a first-quarter net loss as increased fuel costs and
depreciation charges more than offset an increase in sales.  

The key unit of the Hanjin Group lost 41.7B won I the
quarter ended March, compared with a net income of 125B won
in the same period last year, Korean Air said.  

"The bad performance is due to higher operating costs," the
airliner said in a statement.  

Costs of running the airline rose about 26%.  Sales rose
16% to 1.23 trillion won in the first quarter as the
country's economic recovery pushed people to use the
expensive transportation service more frequently.


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

ESSO MALAYSIA BHD: Posts unaudited RM5.7M after-tax loss
--------------------------------------------------------
Esso Malaysia Bhd has reported an unaudited after tax loss
of RM5.7mil in the first quarter of this year compared with
a profit of RM22.3mil for the same quarter last year.

Chairman Datuk Philip J. Dingle said the turnover for the
quarter increased by 77% compared with the first quarter of
1999 due to higher product prices and improved sale of
higher margin products.  Overall, however, margins were
depressed due to the adverse price recovery lags in the
controlled product sector.

"Refining margins remained low from the depressed regional
refining margins. Refinery throughput has remained
relatively unchanged versus the same quarter last year," he
added.

He said although petroleum product demand was anticipated
to grow, margins were expected to remain weak. (The Star  
18-May-2000)

NALURI BHD: Creditors give the go ahead to restructure
------------------------------------------------------
Naluri Bhd has received unanimous backing from creditors to
go ahead with a RM1 billion debt restructuring exercise,
but remained non-committal on whether it will sell a
portion of its stake in
Malaysia Airlines.

Chairman Tan Sri Tajudin Ramli unveiled the scheme,
together with a debt restructuring scheme for Celcom (M)
Sdn Bhd, yesterday which essentially provides Naluri with
the obligation to raise funding within the next two years
through assets disposal to settle at least 50 per cent of
its secured debt.

Naluri remained silent on the assets it will undertake to
sell, citing legal contraints, but Tajudin stressed that
there was a "timetable" as to when the assets would be
disposed.

"Some of the terms in the agreement (with the creditors)
are quite specific. We are not at liberty to speak about
the package as we are committed to the terms," said Tajudin
at a press conference in Kuala Lumpur. "But the terms will
not only help to repay the company debts but also look at
how best to grow the business."

Naluri, which is 47.41 per cent controlled by Tajudin, is
understood to be in debt to the tune of RM1.28 billion,
largely in the form of a two per cent RM600 million
redeemable bank guarantee bonds.  It, however, remains
uncertain on how Naluri's 29.09 per cent stake in Malaysia
Airlines will be affected by the exercise.

Asked by reporters later, Tajudin said despite the disposal
of assets for the settlement of secured creditors, Naluri
will continue to "remain the majority controlling
stakeholder of Malaysia Airlines."

Naluri's owes secured creditors about RM530 million, while
debts to unsecured creditors total RM220 million.Corporate
Debt Restructuring Committee chairman Datuk C. Rajandram
said: "It was never the intention (to dispose of Malaysia
Airlines) at any point of time."

But Rajandram and Tajudin would not commit to the finer
details of the Naluri asset sale. Rajandram pointed out
that of all Naluri's assets, those which have been charged
as collateral would be the ones disposed off for the
exercise.  Apart from the disposal, he added that the
funding for the exercise would also come from Naluri's
other business interests.Naluri has recently invested in
the logistic sector via ACL- Advanced Cargo Logistic GmbH
Holland and in the aerospace sector through Asian
Composites Manufacturing Sdn Bhd.

ACL will complement Malaysia Airlines' cargo operations and
supports the airline's strategy to establish its European
cargo hub at Hahn in Germany.  ACM is a joint-venture with
Boeing, Hexcel and Sime Darby, to manufacture second-
structure composite aircraft for Boeing commercial
aircraft.

The two new companies would be fully operational in early
2001 and are expected to contribute significantly to the
group's earnings in the future.  Meanwhile, on Celcom's
debt restructuring exercise, Tajudin said the
telecommunication company would definitely be able to
settle its creditors within the agreed period.

Celcom's creditors have agreed to allow the company to
incur additional capital expenditure while the deferring
the repayment schedule of the facility by over 20 months.
This would enable Celcom to continue its network capacity
expansion in order to enhance its competitive position.
Celcom, he added, had registered a 40 per cent growth in
revenue as well as new subscribers in the first quarter of
this year compared to the previous corresponding period.

"We expect Celcom to maintain the growth throughout this
year," said Tajudin, explaining that despite LM Ericsson
and Lucent Technologies Inc providing the capital
expenditure, they would only be technical partners and not
new shareholders.

Celcom is Malaysia's largest mobile phone company with
accumulative active customer base of 1.1 million as at
March 2000.  The Naluri-Celcom transactions represent some
of the largest voluntary corporate debt restructuring
exercises completed in Malaysia since the financial crisis.
They also represented one of the most comprehensive cross-
border restructuring in the region.

It involves 40 creditors from 40 international and local
commercial banks, merchant banks, deposit companies,
discount houses, insurance companies and unit trust funds.
The debt restructuring exercise for Naluri and Celcom were
co- ordinated by the CDRC and advised by Chase Manhattan
(SEA) Ltd.  CDRC had been involved in the restructuring of
both companies for about six to nine month. (The New
Straits Times  16-May-2000)


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

PHILIPPINE NAT.BANK: Tycoon, Gov't losing $ each delay
------------------------------------------------------
For every day that it remains in government control,
semiprivate Philippine National Bank (PNB) bleeds to the
tune of P25 million, prompting its biggest shareholder
Lucio C. Tan to balk at any further delay in the bank's
sale.

Government officials privy to the bank's privatization
process yesterday said the Chinese-Filipino businessman is
already complaining about the average net loss, which
directly impacts on his cash position as PNB's single
largest shareholder.

"He has complained that he loses up to P25 million for
every day that the sale is delayed," an official,
requesting anonymity, said.

He said this is the reason Mr. Tan has balked at the
request of the National Government for a two-week extension
of the sale to June 15.The tycoon, he said, wants to
dispose of his stake "at the soonest possible time" to
avoid racking up more losses.  Industry sources also said
PNB had to dip into its own reserves as it is already
finding a hard time borrowing from the interbank market.

Banks were said to be shunning away from lending to PNB
because of uncertainties over the forthcoming sale.
This may be the reason Mr. Tan has asked the Bangko Sentral
to liquidate PNB's huge pile of government securities
holdings, sources speculated. BusinessWorld learned,
however, that the estimated P25-million loss is actually
"shared" pro rata among the bank's different shareholders.

"Of course, he's exaggerating a bit so that he can get his
way," the official said.

The source said since Mr. Tan controls 46% of PNB's shares
through direct ownership or proxies, his actual daily
losses are only 46% of P25 million - or P11.5 million
daily.  The government, on the other hand, loses P7.5
million for every day that PNB is kept on its books.

"That's why the government has asked him to cooperate
because we are in the same boat," the official said. "Any
benefit or disadvantage affects both parties."

Last week, Finance Secretary Jose T. Pardo and Bangko
Sentral Gov. Rafael B. Buenaventura met with Mr. Tan to
push for the extension of the sale's deadline, originally
set for May 26, to give interested investors time to
perform a due diligence audit on the bank.

Mr. Tan, however, disagreed to the deferment, arguing three
separate auditing firms - PricewaterhouseCoopers,
Punongbayan & Araullo, and SGV & CO. - have already audited
the bank's books. Mr. Tan finally agreed to a June 9
bidding date after President Estrada stepped in to convince
him.  (Business World  16-May-2000)

PHILIPPINE NAT.BANK: Revenue drops, posts Q1 loss
-------------------------------------------------
Philippine National Bank posted a net loss of 932.6 million
pesos ($22.4 million) in the first quarter, compared with a
3.3 million pesos net profit in the year-earlier period.

The partly state-owned bank was hit by a sharp drop in
revenue and a steep increase in provisions for doubtful
loans.  Revenue declined 39% to 3.88 billion pesos from
6.39 billion pesos, while provisions rose 83% to 23.6
million pesos from 12.9 million pesos.

PNB's total assets at March 31 were 197.4 billion pesos,
down 2.3% from 202 billion pesos. PNB is said to have the
highest ratio of nonperforming loans in the country's
entire commercial banking `sector. The doubtful loans stood
at 29% of total outstanding loans in December, more than
double the sector's average ratio.

The government plans to sell its 30% stake in PNB early in
June. Local tycoon Lucio Tan will auction his 46% stake and
a PNB pension will divest itself of its and a 3.8% interest
in the bank at the same time.  Rizal Commercial Banking
Corp., one of the largest banks in the Philippines, said it
is interested in bidding for the roughly 80% total share of
PNB scheduled to be put on the block.

"Rizal Bank has indeed expressed interest to bid for the
80% stake in PNB and as such, has already accomplished all
the necessary prequalification requirements," it said.
(The Asian Wall Street Journal  17-May-2000)

UNIWIDE HOLDINGS: Loss narrows
------------------------------
Uniwide Holdings Inc. a Philippine property developer and
retailer, said its net loss narrowed to 62.2 million pesos
($1.5 million) in the first quarter from 69.8 million pesos
a year earlier as financing charges declined.

Uniwide reported a 14% decline in revenue to 99.4 million
pesos from 116.1 million pesos in the first quarter of
1999, while operating expenses were higher at 160.6 million
pesos, compared with 67.9 million pesos.  A suspension of
debt repayments eased the company's financing burden,
resulting in a gain of 2.02 million pesos from a charge of
110.9 million pesos the previous year.

Uniwide secured a moratorium in mid 1999 on payments on its
11.1 billion pesos debt, incurred from an ill-timed
expansion into property development in 1997.  Earlier this
year, Uniwide forged an agreement with French retailer
Casino Guichard Perrachon & Cie. for the sale of Uniwide's
convenience store chain. (The Asian Wall Street Journal  
16-May-2000)

URBANCORP.: SEC determined to cancel license
--------------------------------------------
In a bid to prevent the sale or transfer of its assets, the
Securities and Exchange Commission (SEC) is determined
to cancel Urbancorp license to solicit further investments
from innocent investors.

This was bared by an examiner from the Brokers and Exchange
Department (BED) who declined to be named while the
investigation is still being pushed through by SEC probers.
However, the said official already disclosed that they are
almost 50 percent complete with the investigation. Although
she said that the process is a little complicated compared
to other similar investigations it did before.

In fact, the Bangko Sentral ng Pilipinas (BSP) already
cancelled the license of Urbancorp's trust department
because BSP officials found evidences to prove that it
diverted some of the depositors' money to other
investments.  As this developed, SEC officials could not
yet divulge as to whether it already found proofs that
Urbancorp has abused its close affiliation with cash-
strapped Urban Bank.

At the height of the controversy, the BSP came out with
statements that there was fraud in some financial
transactions between UrbanBank and Urbancorp Investments
Inc.  While the probe is in progress, the SEC has rotated
its department chiefs thus resulting in BED Director Atty.
Elizabeth Martin to be transferred to the Prosecution and
Enforcement Department (PED) which was formerly occupied by
Atty. Ruben Ladia.

Atty. Martin used to lead the audit team that is currently
investigating the alleged involvement of Urbancorp in the
fall of Urban Bank, its mother firm.  In her place, SEC
chairperson Atty. Lilia Bautista had appointed Atty. Jose
Aquino as the new leader of the team that is conducting the
probe on Urbancorp's financial mess.  BED sources, however,
discounted allegations that the reorganizations at SEC has
something to do with the on-going investigation against
Urban Bank's affiliates.

It was reported that former President Fidel V. Ramos was
chairman emiritus of the cash-strapped Urban Bank before
its officials declared a holiday due to massive withdrawals
of depositors. (RP Business News  16-May-2000)

VICTORIAS MILLING CO.: Files amended rehabilitation plan
--------------------------------------------------------
Following the failed bidding of 53% of the company's
capital stock, Victorias Milling Co. (VMC) recently filed
with the corporate overseer an alternative rehabilitation
plan to avoid further delays in the implementation of the
beleaguered sugar miller's recovery efforts.

"The implementation of the approved rehabilitation plan was
delayed for various reasons," VMC said in a manifestation
to the Securities and Exchange Commission (SEC).

The delays, the firm said, resulted in three years of
unpaid interest which has increased the company's debt to
P6.56 billion (as of April 2000), from P5.3 billion when
the firm first encountered liquidity problems.
As interested investors backed out on their bid for
majority control of the sugar firm, VMC has proposed to
restructure its debts by converting into equity all unpaid
interest and part of the principal obligation to the non-
mortgage trust indenture creditors, amounting to P1.10
billion.

Under the new plan, the firm's authorized capital stock
will be increased to 4.61 billion shares instead of the
originally approved 2.56 billion shares. From the new
authorized stock, 495.96 million will be issued to existing
VMC shareholders or 2.91 shares for every one existing
share held.

"Based on the financial data...the debt level of VMC has
grown due to accumulation of unpaid interest, which should
have been paid from the VMC cash flow if the rehabilitation
plan was implemented earlier," VMC said.

In addition to the said debt, the sugar miller pointed out
that the refined sugar delivery order (RSDO) claims -
originally amounting to P630 million - could reach P834
million if the SEC decides to consider the same as direct
liabilities. This further boosts the firm's debt level to
P7.4 billion.

Unsecured creditors, with a combined exposure of P4.2
billion, have also proposed to convert unpaid interest into
direct equity. Their cumulative claims already reached P6.5
billion.

"Clean creditors will become majority shareholders. Of the
32 creditor banks, 23 are unsecured," a Business-World
source earlier said.

Last March 20, the public auction for a controlling 53.35%
stake in VMC resulted in a failed bidding after the two
remaining potential investors failed to submit their
offers.  The bidding of the 567 million new VMC shares was
supposed to raise P567 million in fresh capital.With the
failed bidding, the rehabilitation plan earlier approved by
the SEC cannot be implemented since this depends on the
much-needed equity infusion, a Businessworld source said
earlier.

To make the rehabilitation plan more viable, the revised
plan also called for a joint-venture partner which will
manage VMC and will provide the additional cash of over
P300 million.  The cash infusion will be used to pay
severance and retirement benefits for employees to be
affected by the manpower reduction program.

VMC plans to cut its work force to 1,700 from the present
2,700.The cash infusion may be in the form of new equity or
three-to five-year advances on a last-in first-out basis.
The said cash requirement and the joint-venture partner
must be in place within 20 days from the reconstitution of
the new VMC board.

Upon implementation of the new plan, the new VMC board will
be composed of three existing VMC shareholders, one secured
creditor, six creditors with debt conversion, and one
representative from the joint-venture partner.  The sugar
miller also asked that the suspension of the trading of VMC
shares be lifted upon the implementation of the
rehabilitation plan. (World Reporter  17-May-2000)


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

ABICO HOLDINGS: Posts 1st quarter loss
--------------------------------------
Abico Holdings reported Q1 net losses of 46m bt compared
with net losses of 61.2m bt last year.  (Bangkok Post  17-
May-2000)

AIG FINANCE (THAILAND): Posts 1st quarter loss             
----------------------------------------------
AIG Finance (Thailand) reported Q1 net losses of 6.4m bt
compared with net losses of 166m bt last year.  (Bangkok
Post 17-May-2000)

BANK THAI: Posts 1st quarter loss                          
---------------------------------
BankThai reported Q1 net losses of 234m bt compared with
net losses of 10bn bt last year.  (Bangkok Post  17-May-
2000)

BANGKOK BANK: Posts 1st quarter loss                       
------------------------------------
Bangkok Bank reported Q1 net losses of 22.3bn bt compared
with net losses of 9.9bn bt last year.  (Bangkok Post  17-
May-2000)

BANGKOK METRO.BANK: Posts 1st quarter loss                 
------------------------------------------                       
Bangkok Metropolitan Bank reported Q1 net losses of 1.2bn
bt compared with net losses of 1.1bn bt last year.  
(Bangkok Post  17-May-2000)

BATA SHOE OF THAILAND: Posts 1st quarter loss              
---------------------------------------------
Bata Shoe of Thailand reported Q1 net losses of 3.5m bt
compared with net losses of 13m bt last year.  (Bangkok
Post  17-May-2000)

DBS THAI DANU BANK: May be forced to off-load bad debts
-------------------------------------------------------
DBS Thai Danu Bank (DTDB), a unit of the major Singapore
banking group, is on the brink of yielding to non-
performing loans (NPL) pressure, saying it will decide as
early as next month if it will sell it's bad loans to other
financial institutions.

DTDB said that if the Thai economy continues weakening and
the lending rate remains sluggish, the bank has no choice
but to unload its bad loans, a move that promises heavy
financial losses.

"However, economic and business conditions will determine
the amount, price and time of selling." said the bank
President Pornsanong Tuchinda, "we have been receiving
offers from several foreign institutional investors about
our NPL portfolio."

Pornsanong said assuming the sales had been completed, the
bank's balance sheet will likely be in a sea of red ink
requiring an additional fund to absorb the loss.
Pornsanong said over the holiday that DTDB needs four
billion baht to complete their loan-loss provisions, which
the bank has no trouble with, adding that the only main
concerns are losses from selling the NPLs and resulting bad
debt write-off.

DTBS's shareholders will meet on May 26 to vote on the 13.5
billion baht capital raising plan. According to the
proposal, the bank will offer right issues totaling 1.1
billion baht for every share held at a price of 10 baht,
each with free warrant attached. The recapitalization plan
also calls for the issuance of 2.5 billion shares through a
private placement group.

"DTDB is up against the wall and must manage the capital to
the maximum efficiency. With the current economic
condition, the bank doesn't anticipate much lending nor
improvment in service fees," Pornsanong said.

Under the premise that shareholders give the plan the green
light, the bank expects to obtain new capital in June.
Meanwhile, Varaporn Vuthipandchai, a banking analyst with
Seamico Securities noted that DTDB's decision to sell their
bad loan stems from the fact that unlike Thai banks, DTDB
does not have the luxury of establishing an asset
management unit to deal with impaired loans - a privilege
that foreign controlled banks lack.

She also commented that Thai banking stocks are not
attractive to either institutional or retail investors at
the moment, owing to ineptitude in dealing with NPLs.
(Business Day  18-May-2000)

DBS THAI DANU BANK: Posts 1st quarter loss                 
------------------------------------------                        
DBS Thai Danu Bank reported Q1 consolidated net losses of
185.9 compared with net losses of 352.2m bt last year.  
(Bangkok Post  17-May-2000)

L.P.N. DEVELOPMENT: Posts 1st quarter loss                 
------------------------------------------
L.P.N. Development reported Q1 net losses of 22m bt
compared with net losses of 133m bt last year.  (Bangkok
Post  17-May-2000)

PRASIT PATANA: Posts 1st quarter loss                      
-------------------------------------
Prasit Patana reported Q1 net losses of 163m bt compared
with net losses of 285m bt last year.  (Bangkok Post  17-
May-2000)

PREMIER ENTERPRISE CO.: Rehab petition accepted
-----------------------------------------------
The Central Bankruptcy Court has accepted a petition for
business rehabilitation for Premier Enterprise Co. As of
Dec 31, Premier had debts of 16.59 billion baht owed to 98
creditors.

Premier is an auto distributor with 20 outlets, plus
leasing, hire-purchase and repair services. It also has
several consumer product businesses, including frozen
seafood, fruits and vegetables, canned foods and seasonings
for domestic and export sale.

A hearing is scheduled for June 12. The court also ordered
Thai Power Co to enter business rehabilitation. (Bangkok
Post  18-May-2000)

SAHAVIRIYA OA: Posts 1st quarter loss                      
-------------------------------------
Sahaviriya OA reported Q1 consolidated net losses of 137.5m
bt compared with net losses of 277.5m bt last year.  
(Bangkok Post  17-May-2000)

SIAM GENERAL FACTORING: Posts 1st quarter loss             
----------------------------------------------
Siam General Factoring reported Q1 net losses of 76m bt
compared with net losses of 60m bt last year.  (Bangkok
Post  17-May-2000)

SIAM STEEL INT'L: Posts 9-month loss                       
------------------------------------
Siam Steel International reported consolidated net losses
of 850.5m bt for nine months ending March 31, compared with
net losses of 126.5m bt last year.  (Bangkok Post  17-May-
2000)

SRITHAI SUPERWARE: Posts 1st quarter loss                  
-----------------------------------------
Srithai Superware reported Q1 consolidated net losses of
122.9m bt compared with net losses of 203.5m bt last year.  
(Bangkok Post  17-May-2000)

SRIVARA REAL ESTATE GROUP: Posts 1st quarter loss           
-------------------------------------------------
Srivara Real Estate Group reported Q1 net losses of 209.5m
bt compared with net losses of 1.8bn bt last year.  
(Bangkok Post  17-May-2000)

TANAYONG: Posts loss                                        
--------------------
Tanayong reported 1999 consolidated net losses of 3bn bt
for the period ending March 31, compared with net losses of
4.4bn bt for the same period last year.  (Bangkok Post  17-
May-2000)

THAI FISHERIES: Posts 1st quarter loss                     
--------------------------------------
Thai Fisheries reported Q1 net losses of 88m bt compared
with net losses of 123m bt last year.  (Bangkok Post  17-
May-2000)

THAI MILITARY BANK: Set to wrap up fund-raising efforts
-------------------------------------------------------
Thai Military Bank will wrap up its lengthy Bt29.88-billion
fund-raising tomorrow by signing an agreement with the
Finance Ministry for the government's financial assistance
in raising its tier-1 capital.

Last year's effort to find takers for the bank's global
offering of four billion shares sputtered out because of
unfavourable market sentiment. However, its second attempt
has received a warm reception from investors, thanks to a
sweetener of two free warrants for each new share bought.

Under the current drive to raise Bt29.88 billion out of the
total Bt40-billion plan, 691 million common shares were
marketed at Bt10 each through private placement, 305
million shares were offered to shareholders at the same
price and 1.992 billion preferred shares will be sold to
the Finance Ministry as part of the government's capital
support programme. All shares were priced at Bt10 each. The
subscription period ended on May 16.

The bank has not indicated when it will float the remaining
1.01 billion shares not included in the current
recapitalisation exercise.  A high-ranking source at the
country's sixth largest bank said telecom tycoon Thaksin
Shinawatra and National Finance Plc subscribed to 150
million shares each, Chai Chaiyawan subscribed to 100
million shares and liquor lord Charoen Sirivadhanabhakdi to
50 million. The bank's current largest shareholder, the
Royal Thai Army, also exercised its right to purchase 120
million shares.

The bank's registered capital increased from Bt10 billion
to Bt50 billion.Apart from Thai Military Bank, the
country's fourth largest bank, Siam Commercial Bank, and a
leading finance house, Tisco Finance Plc, have also beefed
up their capital base under the government's scheme. All of
the Bt3.05-billion rights issue is expected to be fully
taken up by its shareholders, a senior bank executive told
Dow Jones Newswires on Tuesday.

"Considering the current bids we have received so far, I'm
confident that the bank will be able to raise the whole
amount as we have planned," said Akadej Bijaphala, a
director and senior executive vice-president at the bank
was quoted as saying.

Akadej said part of the newly raised capital would be used
to write off its troubled loans but declined to give an
exact figure. After the write-off, its full loan-loss
reserve requirement will be fulfilled and its capital-
adequacy ratio strengthened to about 14 per cent from the
current 10.5 per cent.

Analysts view the bank's move to enter the tier-1 programme
and its successful placement of shares as positive steps to
build up its muscle in terms of capital.

"The move is definitely positive for the bank and its
short-term sentiment as its capital base and balance sheet
would be stronger," said Vichai Mann, head of research at
Yuanta Securities in Bangkok.

However, analysts expressed long-term concern over the
bank's failure to attract strategic foreign partners,
leaving it vulnerable in the fiercer competitive
environment today.

"It would be very tough for the bank to compete as the
competition is intensifying. Many other banks are tying up
with stronger foreign banks in order to acquire new
technology and funding back up, but Thai Military Bank
chose another way," said Vichai.

"Given its unrelated banking experience, [lack of]
alliances and an absence of a foreign partner, Thai
Military Bank is still at a disadvantage, compared with
hybrid banks," agreed Thanatthep Chantarakarn, a banking
analyst at Thai Thanakit Securities. (The Nation  18-May-
2000)

THAI PETROCHEM.INDUSTRY: Drawing up new rehab plan
--------------------------------------------------
The new Thai Petrochemical Industry Plc rehabilitation plan
being drawn up by the court-approved planner, based on the
original April 1999 agreement between creditors and
management, should lead to a recovery in the share price
and eliminate speculation about a capital write-down,
analysts said.

"Effective Planner has confirmed already that the new plan
will be based on the April 1999 draft and the February term
sheet which were approved by 90 pct and 96 pct of creditors
respectively and this is good news for minority investors,"
Maria Lapiz of SG Equity Research said.  "Ostensibly this
should kill the rumours of a capital write-down which in
our opinion would be uttely futile.

"We estimate that by 2003," added Lapiz, "the TPI debt
balance should be 2.5 bln usd and totally refinanced as
there is a default clause which says if TPI fails to bring
down debt to 2.5 bln usd by then, the outstanding bond will
convert into a 45 pct stake in the company, giving the
creditors a combined 75 pct stake in TPI, rather than the
30 pct they will hold under already planned conversions."

These points, Lapiz said, are subject to change and
dependent mostly on the operating outlook and whether they
make operational and economic sense as determined by the
planner.

"Under the debt restructuring plan already discussed we
expect amortised debt classified as tier-1 will have coupon
concession rates starting from LIBOR minus 3.00 pct,
stepped up 200 basis points per year to plus 2.00 pct, all
of which will be cash serviced," Lapiz said. "The
amortising debt classified as tier-2 will have an average
coupon rate of LIBOR plus 1.5 pct and the bond coupon rate
will be unchanged at around 10.38 pct. The servicing burden
of the tier-2 will accrue as new debt when the cash
generated from operations, net of the servicing burden on
tier-1 and the bond, is insufficient.

"Accrued interest plus the present value of the
differential in coupon rates will be converted into equity
which will give the creditors a 30 pct stake in TPI. We
also anticipate that TPI's direct holding in unit TPI
Polene Plc will be sold off, athough TPI Polene's debt
restructuring is couched as a separate issue by the
planner, but we do see solid cash benefits from
the sale eventually.

"The bottomline is that (successful) debt restructuring
will transfer value from creditors to equity holders and
our cashflow estimates indicate that TPI as a going concern
can service its debt and repay principal," Lapiz said.
"The overall operating outlook for TPI is mixed although
positive," she added. "The current volatility in raw
materials is a result of fluctuating crude oil prices but
TPI will fare better than its competitors as it has exactly
the right kind of operating environment to benefit from its
fully integrated set-up.

"As was the case with many diversified polymer producers,
TPI also suffered tightening margins in some polymer
segments, especially polyethylene. The company compensated
for this by focussing on product specification where it has
an advantage and can lift output on pipe-grade polyethylene
where prices are better and TPI is the only producer in
Thailand.

"During the first quarter of 2000 TPI generated an
unaudited EBITDA of 70 mln usd in line with our
expectations. They are on target to see earnings of 277 mln
usd this year based on higher domestic sales volumes and
better prices for refined petroleum products," Lapiz said.

TPI reported a net loss of 737.26 mln baht for the first
quarter.  Neil Semple of ABN Amro Securities said there is
little likelihood of an equity write-down with the planner
now at the helm.

"The main aim of the TPI rehabilitation is (evidently) to
avoid paying dividends. Or rather, in general in financial
rehabilitation, the only key reason for writing off
retained losses is in order to clear the way for paying out
dividends.  Thus the impetus to write off retained losses
is not high on the list of things to do, or that need to be
done," he said. "Meantime, assisted by an end to high
penalty rates of interest and helped moreover by low
concessional rates of interest as part of the
rehabilitation, TPI should manage a normalised profit in
2000, posting growth through to 2002 on the back of the
upswing that is now underway in the petrochemical business
in Asia. However, that growth is seen easing off in 2003 as
the cycle dips.

"Assisted also by a low tax rate due to losses carried
forward, we place the TPI PER at 8.5 times in 2000, easing
to 4.5 times in 2002.  Our target price for the share using
a somewhat overstated reported adjusted book value, is 17
baht per share," he said.TPI closed the morning unchanged
at 8.30 on trade of 1,858 lots. (World Reporter  16-May-
2000)

THAI PETROCHEM.INDUS.: Posts 1st quarter loss              
---------------------------------------------
Thai Petrochemical Industry reported Q1 consolidated net
losses of 737.3m bt compared with net losses of 3.4bn bt
last year.  (Bangkok Post  17-May-2000)

TUNTEX (THAILAND): Posts 1st quarter loss                  
-----------------------------------------                          
Tuntex (Thailand) reported Q1 consolidated net losses of
121.3m bt compared with net losses of 569m bt last year.  
(Bangkok Post  17-May-2000)

UOB RADANASIN BANK: Posts 1st quarter loss                 
------------------------------------------
UOB Radanasin Bank reported Q1 net losses of 225.5m bt
compared with net losses of 544.3m bt last year.  (Bangkok
Post  17-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

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