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

                            A S I A   P A C I F I C

             Wednesday, May 31, 2000, Vol. 3, No. 105

                                   Headlines


* A U S T R A L I A *

BASTION ESTATE: Gideon insurance no help to estate
CHRISTOPHER CHRONIS DESIGNS: On edge of financial ruin
KERRY PACKER COMPANIES: Battle with ATO heads to High Court
WRB TRANSPORT: Truck crash firm fights liquidation


* C H I N A  &  H O N G  K O N G *

CHINA AEROSPACE INT'L HLDGS.: Widens annual loss
FAIRFORM HOLDINGS: Annual loss widens
WHIMSY ENTERTAINMENT CO.: Winding up announcement to HKSE
ZHUHAI HIGHWAY PROJECT: S&P downgrades note rating


* I N D O N E S I A *

BAHARI BANK: IBRA sells properties
BDNI BANK: IBRA sells properties
BIRA BANK: IBRA sells properties
BUMIRAYA BANK: IBRA sells properties
BUN BANK: IBRA sells properties
DEWRUTJI BANK: IBRA sells properties
DHARMALA BANK: IBRA sells properties
MASHILL BANK: IBRA sells properties
MODERN BANK: IBRA sells properties
NAMURA BANK: IBRA sells properties
PT BAKRIE FINANCE: Declared bankrupt
PT GARUDA INDONESIA: No agreement yet on $1.8B debt plan
SEKAR GROUP: Creditor syndicate to convert debt to equity
SUBENTRA BANK: IBRA sells properties


* J A P A N *

DAI-ICHI HOTEL LTD: Goes bust, files for bankruptcy
ISHIKAWAJIMA-HARIMA HEAVY INDUS.: To post net loss
ISUZU MOTORS LTD.: Suffers 50.8B Yen group operating loss
KAWASAKI HEAVY INDUSTRIES: To post net loss
MITSUBISHI HEAVY INDUSTRIES: To post net loss
NAMIHAYA BANK: Daiwa Bank Group likely to take over
NIPPON TEL.& TEL.CORP.: Sinks into red over pension losses
SAISON GROUP: Ponders winding up luxury goods store
TAKARA CO.: To liquidate three subsidiaries
YAMAHA CORP.: Losses widen due to massive special losses


* K O R E A *

DAEHAN INVEST.TRUST: Kamco injects cash
DAEWOO GROUP: Debt buyout from foreign creditors starts
HYUNDAI ENGIN. & CONST.: KEB to contingent fund support
HYUNDAI GROUP: Cash flow problem finally confirmed
HYUNDAI GROUP: To get W350B rescue fund
HYUNDAI GROUP: Emergency loan sparks Seoul market drop
HYUNDAI GROUP: Affiliates offered emergency funds, too
KOREA INVEST. TRUST: Kamco injects cash


* M A L A Y S I A *

HO WAH GENTING BHD: Gets warrant holders' nod for scheme
L & M EAST MALAYSIA: KLSE told of year-old debt settlement
PELANGI AIRWAYS: Seeks RM40M new capital
PROMET: To change core business
TAI WAH GARMENTS: Revises restructuring scheme
TIME ENGINEERING: Hopes to seal deal before June 8


* T H A I L A N D *

ITV: SCB deal seen as key to plan, Nation opposes 40% stake
SUBMICRON TECHNOLOGY: Creditors to decide fate June 23
THAI OIL PLC.: Completes rehabilitation plan
THAI PETROCHEM.INDUSTRY: Weak baht 'will hit debt revamps'
WONGPAITOON GROUP PLC: Timetable after reorganization order


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

BASTION ESTATE: Gideon insurance no help to estate
--------------------------------------------------
A statement of affairs for Michael Bastion, the horse
racing investor who fell to his death in March, shows an
$A8m deficiency.  The statement was lodged by Bastion's
widow, Maureen, on 25 May 2000 accompanying an application
for administration orders for the estate under the
Bankruptcy Act.

Michael Bastion's assets of $A3.93m compare with
liabilities of $A11.6m, but there are several unknowns
entered on both sides of the ledger.  A life policy of
$A2.9m was not available to meet the claims on the estate
as it was owned by the Bastion-associated Gideon
Investments. (The Age  26-May-2000)

CHRISTOPHER CHRONIS DESIGNS: On edge of financial ruin
------------------------------------------------------
Fashion identity Chris Chronis is on the brink of financial
ruin after his stores were seized by a receiver this week.

But Mr Chronis, 38, is hopeful his Melbourne company,
Christopher Chronis Designs, will be rescued by a group of
investors.  The group plans to take over the company and
offer Mr Chronis a senior management role.

Receiver KPMG stepped in on Tuesday, taking control of
stores in Melbourne, Sydney and Brisbane.  About 16 head
office staff were sacked on Thursday by KPMG.  Most other
staff walked out in protest yesterday, forcing many stores
to close their doors to customers.

CCD has seven stores in Melbourne and Sydney, four Gas
Station street-wear stores in Melbourne, Sydney and
Brisbane and the signature store Christos, in Chapel St,
South Yarra.  KPMG, which was appointed by National
Australia Bank, has warned it could sell the business to
recoup money. But the investors group made an 11th hour
offer to KPMG yesterday. Receiver Lindsay Maxsted said the
takeover offer would be considered.

Mr Chronis was hopeful the receiver would accept the offer,
allowing stores to resume normal operations as soon as
possible.  He blamed over-borrowing and personal issues for
his setback.  The release of his fragrance Christos in
November 1998 stretched the company's finances, he said.

"We had borrowed a lot of money for the launch of the
Christos fragrance.  "We really started experiencing
financial difficulties a few months ago.  I suppose the
bank got nervous. At the end of the day, NAB thought it fit
to move in and recover what they could."

Mr Chronis said he was devastated his business had all but
collapsed after building it for the past 15 years.  "It's
been a sad time for me," he said. "They can strip
everything from me but they can't strip my ability to get
back up. I'm a fighter so I'll find a way back."

He said he was thankful his staff had remained loyal and
was overwhelmed by the support of his family and his new
partner, Christine, by whom he has a 14-month-old boy,
Nikita.  "I've put my family at risk here. I don't take
this lightly," Mr Chronis said.

His brother Dennis, 36, risks losing his house if the
receivership goes ahead. (Herald Sun  27-May-2000)

KERRY PACKER COMPANIES: Battle with ATO heads to High Court
-----------------------------------------------------------
The Tax Office (ATO) and Australia's richest man, Kerry
Packer, are to go head-to-head in the High Court.

The ATO alleges Mr Packer's companies owe over $100 million
in tax from a series of overseas transactions.  The claim
relates to a four year period between 1988 and 1992. One of
the main issues is the 1990 transfer of Consolidated Press
companies from Britain to the Bahamas.

The ATO claims the companies were moved after announcements
in Britain and Australia about changes to tax laws, in an
asset-stripping exercise, to move profits beyond
Australia's jurisdiction.

In earlier legal action, the Federal court ruled the
companies did not indulge in asset-stripping in the Bahamas
transaction.  But the court did rule the Packer companies
entered into a scheme to avoid tax in a 1989 failed
takeover bid.  The High Court has agreed to consider both
issues, with Consolidated Press calling for the tax
avoidance ruling to be overturned, and the ATO wanting a
ruling the group is guilty of asset stripping. (ABC News
Online  27-May-2000)

WRB TRANSPORT: Truck crash firm fights liquidation
--------------------------------------------------
The trucking company linked to one of the State's worst
road crashes is fighting liquidation with debts of almost
$3 million.

WRB Transport, which was placed in voluntary administration
last month, faced a three-year legal battle after one of
its trucks was involved in a crash that killed six people
near Blanchetown in August, 1996.

In March last year, Coroner Wayne Chivell cleared the
company of any involvement in the crash but found the
company's directors, Wayne and Philip Bunker, and other
members of the family provided "stay-awake" drugs to their
drivers.  One of the drivers was Brian Douglas Snewin, 29,
who was behind the wheel of the truck at Blanchetown.
He was on his fourth trip between Sydney and Adelaide in
five days when he fell asleep at the wheel, crossed to the
wrong side of the Sturt Highway and hit two oncoming cars.

In a report to creditors dated May 8, administrators Duncan
Powell said WRB Transport owed $927,000 to the National
bank and a further $1.97 million to unsecured creditors.
Administrator Nick Gyss said yesterday Duncan Powell was
still investigating the company's affairs and expected to
report back to creditors next month.  More than 20
creditors attended a meeting on April 17, but there are a
total of 174.

"We have a duty to investigate thoroughly the company's
affairs," Mr Gyss said. "At the (April 17) meeting, several
creditors raised issues. We're looking at those, and other
issues. It would be improper for us to talk specifically."

Mr Gyss said the competitive nature of the trucking
industry and fuel prices may have led to the company's
troubles.

"The price of fuel has had a dramatic impact on the company
since last year," he said.  "In the transport industry,
fuel costs have a significant impact on profitability."

Debts to unsecured creditors include:
_ $27,000 shortfall to leasehold creditors.
_ $1.25 million to trade creditors.
_ $250,000 to transport contractors.
_ $198,000 owed to related company, WRB Transport Services,
which supplied drivers.
_ $246,000 owed to related entities such as the company's
directors and companies owned by the directors.

Against this, WRB Transport had $18,000 in the bank, $5000
worth of stock and debtors of $1.463 million.  Duncan
Powell believes about $400,000 of those debts will not be
realised. WRB also has three trucks, seven trailers and
other equipment worth $140,000. (The Advertiser  27-May-
2000)


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

CHINA AEROSPACE INT'L HLDGS.: Widens annual loss
------------------------------------------------
China Aerospace International Holdings Ltd. said that its
net loss widened slightly to HK$384 million (US$49.3
million) in 1999 from HK$342.2 million a year earlier.

On an earnings per share basis, the net loss widened to
21.5 Hong Kong cents from 21.2 cents.  The losses were
partly attributed to further large provisions for doubtful
debts, which almost doubled to HK$218.6 million last year
from HK$121.2 million in 1998.

In addition, the company posted a HK$31.5 million loss on
the disposal of a subsidiary and made write-offs of project
and development costs totaling HK$38.3 million. (South
China Morning Post  26-May-2000)

FAIRFORM HOLDINGS: Annual loss widens
-------------------------------------
Electronic personal care and health care products maker
Fairform Holdings said net loss widened to HK$93.4M for the
year to December 31, compared with a HK$69.2M loss the
previous year.  Turnover shrank 44% to HK$158.3M.  The
company attributed the bigger losses to intensified price
competition and squeezed profit margin.  It said many of
its products have reached the end of their production
cycles.

WHIMSY ENTERTAINMENT CO.: Winding up announcement to HKSE
---------------------------------------------------------
On 26th February, 1999, the directors of Whimsy Company
Limited ("WCL"), a wholly owned subsidiary of the Company,
passed a resolution to wind up WCL On the basis that WCL
could not, by reason of its liabilities, continue its
business. The Company made an announcement of this event on
1st March, 1999. Subsequently, Kennic Lai Hang Lui and Lau
Wu Kwai King, Lauren, both of Kennic L. H. Lui & Co., were
appointed as the Joint and Several Liquidators of WCL on
24th March, 1999 and its wholly owned Subsidiaries (namely
Stingray Company Limited, Tammy Company Limited and Maxipar
Company Limited) on 26th March, 1999 respectively.

As a result, the net liabilities of these subsidiaries of
approximately HK$29,772,000. Previously taken up by the
Group were written back to income during the Year and
included as other revenue under discontinued operations.
The calculation of loss per share is based on the loss for
the year/ Period of HK$12,524,000 (1998: HK$103,945,000)
and on the weighted average Number of 397,918,762 (1998:
342,720,000) ordinary shares in issue during The year/
period.

No diluted loss of per share has been presented as there
are no potential Dilutive ordinary shares outstanding as at
31st December, 1999.

Prior to 1st January, 1999, costs incurred prior to the
commencement of the commercial operation of a new
entertainment center or the trading of new products under a
particular brand name, were capitalised and amortized over
a period of five years on a straight-line basis. Commencing
from 1st January, 1999, these pre-operating expenses are
charged to the income statement as incurred.

This change in accounting policy has been applied
retrospectively. As a result of this change in accounting
policy, the Group's loss for the nine months ended 31st
December, 1998 was decreased by approximately HK$4,138,000.
For the year ended 31st December, 1999, the Group's loss
for the year decreased by approximately HK$437,000. (Hong
Kong Stock Exchange 27-May-2000)

ZHUHAI HIGHWAY PROJECT: S&P downgrades note rating
--------------------------------------------------
Standard & Poor's lowered its rating for Zhuhai Highway's
US$85M senior notes from -BBB to -BB yesterday.  The rating
for the company's $115M subordinated notes was also lowered
from B+ to -B.

The downgrade reflects fears of a cross-default at Zhuhai
Highway - a concern S&P has not been able to discuss with
the Zhuhai city government. The revenue bonds are secured
by vehicle registration fees and Zhuhai City road tolls and
the terms dictate that vehicle charges must be raised 8% a
year.  The 8% rise has been technically approved, but the
municipality is slow to impose it for political reasons.

The rating agency was concerned that Zhuhai Highwaay may
not be able to pay under the current debt structure,
creating the risk that the company will refuse to honour
the borrowing contract.  The initial borrowing structure
instituted for the benefit of the bond holders was believed
to be a robust one, according to S&P.  Adding to the rating
agency's concerns is uncertainty about how the Zhuhai
government intends to honour its debt.


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

BAHARI BANK: IBRA sells properties
BDNI BANK: IBRA sells properties
BIRA BANK: IBRA sells properties
BUMIRAYA BANK: IBRA sells properties
BUN BANK: IBRA sells properties
DEWRUTJI BANK: IBRA sells properties
DHARMALA BANK: IBRA sells properties
MASHILL BANK: IBRA sells properties
MODERN BANK: IBRA sells properties
NAMURA BANK: IBRA sells properties
SUBENTRA BANK: IBRA sells properties
------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) said that
it managed to book Rp 105 billion (about US$12.3 million)
from the auction Saturday of 18 properties from a bevy of
banks.

The agency said in a statement that the amount achieved at
the auction held by PT Ray Wahid Lelang was 70 percent
higher than its initial estimate.  The properties sold over
the weekend were formerly owned by closed Bumiraya Bank,
Bira Bank, Modern Bank, Bahari Bank, Dewrutji Bank,
Subentra Bank, Dharmala Bank, BDNI Bank, Mashill Bank, BUN
Bank and Namura Bank.

Most property sites are at strategic locations, such as
Jalan Mangga Dua Raya, Jalan Kelapa Gading, ITC Roxy Mas,
Jalan Kemang Raya and Permata Hijau.

The auction, which was held at Shangrila hotel, was the
first phase of the second series of property auctions to be
conducted by the agency through the end of next month.
IBRA will hold another property auction on May 31 organized
by PT Balai Lelang Indonesia (Balindo), which will sell 25
properties, mostly shop- houses, worth some Rp 15 billion.
(West Clip  29-May-2000)

PT BAKRIE FINANCE: Declared bankrupt
------------------------------------
The Supreme Court has declared PT Bakrie Finance Corp
bankrupt after a request from creditors, lawyer for the
creditors Jonie Aries Bangun said Friday.

The creditors said Bakrie Finance failed to repay a 13.5
million dollar debt, part of a larger 21 million dollar
syndicated loan, that was due on May 3.  The plaintiffs in
the suit were AB Capital Markets (Hong Kong) Ltd, Cho Hung
Leasing and Finance (Hong Kong) Ltd, Hanmi Leasing and
Finance (Hong Kong) Ltd, and KEB Leasing and Finance Ltd.

The Supreme Court decision by Judge H.P. Panggabean
overturned a ruling by the Commercial Court in March
rejecting the bankruptcy suit against Bakrie Finance, part
of the diversified Bakrie conglomerate which has interests
in securities, telecoms and cable manufacturing. Bakrie
Finance Corp lawyer Freddy Simatupang said the company
would apply for a review of the Supreme Court decision.

"The judge's decision is rather strange because the
majority lenders do not agree that BFC (Bakrie Finance
Corporation) should be declared bankrupt," Simatupang said.
"The lenders and BFC are in the process of talks to
restructure all of the company's debt."  (Agence France
Presse  26-May-2000)

PT GARUDA INDONESIA: No agreement yet on $1.8B debt plan
--------------------------------------------------------
Creditors of state-run PT Garuda Indonesia have yet to
approve a scheme to restructure 1.8 bln usd in debt, Garuda
finance director Emirsjah Satar said.

Satar told journalists that Garuda has offered several
alternatives including rescheduling of up to 16 years as
well as a debt to equity swap.  "So, we are now delaying
the target for debt restructuring to August," he said.

He added that the company will conduct an international
roadshow to seek strategic investors to help with
restructuring. (AFX News; World Reporter 25-May-2000)

SEKAR GROUP: Creditor syndicate to convert debt to equity
---------------------------------------------------------
A creditor syndicate led by Banque Nationale de Paris has
signed a term sheet with the Sekar Group to restructure
27.975 mln usd in debt, according to a copy of the
document.

The majority of the debt will be converted into equity in
the Sekar Group's main subsidiary, PT Sekar Laut.

"The aim is to bring back the combined stake of (the)
founders and PT Alamiah Sari (in Sekar Laut) to 35 pct,
concurrently giving the syndicate banks a share of 43.9 pct
in the same," the term sheet said.

Alamiah Sari is the controlling shareholder of Sekar Laut
and its wholly owned subsidiary, PT Pangan Lestari. The
companies' main business is shrimp cracker manufacturing
and distribution, noodles, confectionary and dried marine
products.  Under the deal, the creditor syndicate will
convert 17.735 mln usd into ordinary Sekar Laut shares by
July 31, priced at 1,859 rupiah per share at an exchange
rate of 7,100 to the dollar, the document said.

The term sheet said the founders will be given the right to
try to buy back some of the shares at a later date or to
make a counter offer should the creditors receive a third
party offer for their stake.

"The founders will be given a pre-emptive right to purchase
a yet-to-be quantified number of shares from the syndicate
banks' stake for a period of two years from the signing of
the restructuring agreement," the document said.

Of the remainder of the debt, the document said 9.091 mln
usd will be converted into a term loan with 6.966 mln usd
of the sum to be paid in annual installments starting end-
2001 and finishing end-2006. It said 2.125 mln will remain
outstanding at end-2006 but gave no further details.
Interest on the term loan will be SIBOR plus 2.5 pct for
2000 and 2001, SIBOR plus 2.75 pct for 2002, 2003 and 2004
and SIBOR plus three pct for 2005 and 2006.

The term sheet also stipulates that a further 1.147 mln usd
of the loan will be converted into a zero coupon bond due
end 2006 but gave no further details.  The conditions for
the deal include tight controls on company cashflow,
capital expenditure, corporate actions, and transactions
with affiliates as well as requirements for asset disposal.

"Sekar agrees that best endeavours will be made to identify
and dispose of assets identified to be surplus to Sekar's
operations on an arm's length basis with a view to
achieving the best price available," the term sheet said.

The document was signed by Sekar Laut president director
Harry Sunogo, Pangan Laut president director Tjahjono
Haryono and officials of PT Rabobank Duta Indonesia, BNP
(Singapore), and American Express Bank Ltd (Jakarta).

"This document is non-binding in a legal sense but
illustrates nevertheless a clear intention by the
signatories to proceed with a full and legal
restructuring," the document concluded. (AFX News; World
Reporter  25-May-2000)


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

DAI-ICHI HOTEL LTD: Goes bust, files for bankruptcy
---------------------------------------------------
Japan's Dai-Ichi Hotel Ltd. group went bust Friday with 1.1
billion dollars in liabilities after failing to persuade
creditors to waive massive debts, a private credit research
agency said.

Dai-Ichi Hotel, a Tokyo-based hotel operator burdened with
liabilities of 117 billion yen (1.1 billion dollars), filed
a petition with the Tokyo District Court for protection
from creditors, Teikoku Databank Ltd. said.  It was the
largest bankruptcy of a Japanese hotel operator, with the
liabilities exceeding the 106.6 billion yen left behind by
Sazale Corp. in November 1995, a Teikoku official said.

Dai-Ichi Hotel, established in 1937, employs 470 people and
runs 43 hotels at home and three overseas, Teikoku Databank
said.  The group's sales peaked at 23.37 billion yen in the
year to March 1994.  Dai-Ichi Hotel "gave up rehabilitation
on its own as it failed to get an accord with financial
institutions on a debt waiver," Teikoku Databank, which
monitors Japanese corporate failures, said in a statement.

The talks hit a snag partly because its main creditor,
Long-Term Credit Bank of Japan Ltd. (LTCB), was taken over
by a syndicate led by US investment group Ripplewood
Holdings in February, it said.  LTCB collapsed in October
1998 under the weight of massive bad loans dating
back to Japan's "bubble economy" speculative investment
boom of the late 1980s.

It had been placed under temporary state control until
becoming the first Japanese bank to be sold outright to
foreigners.  Neither Dai-Ichi Hotel nor LTCB were
immediately available for comment.  (Agence France Presse
26-May-2000)

ISHIKAWAJIMA-HARIMA HEAVY INDUS.: To post net loss
KAWASAKI HEAVY INDUSTRIES: To post net loss
MITSUBISHI HEAVY INDUSTRIES: To post net loss
--------------------------------------------------
Five of the six major shipbuilding and heavy machinery
companies suffered consolidated net losses for the year
ended March 31. Hitachi Zosen Corp. (7004) was the only
exception.

The strong yen and an economic slump in Japan and Southeast
Asia dealt a heavy blow to their core businesses. Their net
losses were exacerbated because they covered shortfalls in
their retirement and pension obligations and chalked up
extraordinary losses from unprofitable operations.

The red ink led Kawasaki Heavy Industries Ltd. (7012) and
Ishikawajima-Harima Heavy Industries Co. (7013) to cancel
their dividend payments. Mitsubishi Heavy Industries Ltd.
(7011) decided to reduce dividend payments.

The poor performance of their plant businesses were a big
factor. Mitsubishi Heavy suffered a group operating loss of
37.2 billion yen in its power division, while Kawasaki
Heavy posted a 11.3 billion yen loss in its machinery
division. IHI reported a 11.5 billion yen loss in its
machinery/plant division.

Mitsubishi Heavy booked an extraordinary loss of 92 billion
yen, while IHI took a 9.9 billion yen charge to cover their
money-losing operations.  To cover shortfalls in their
retirement funds, Mitsubishi Heavy posted an extraordinary
loss of 130.8 billion yen, while IHI took a 102.8 billion
yen charge.

For the year ending March 2001, the six shipbuilders expect
their plant businesses to improve and aim to return to
profitability. But Kawasaki Heavy projects a group net loss
of 7 billion yen. (Nikkei  27-May 27, 2000

ISUZU MOTORS LTD.: Suffers 50.8B Yen group operating loss
---------------------------------------------------------
Isuzu Motors Ltd. (7202) announced Friday that it posted
50.8 billion yen in consolidated operating loss in the
fiscal year ended March 31, compared with a profit of 9.2
billion yen a year earlier, due to poor truck sales.

Group net loss totaled 104.2 billion yen, compared with a
net profit of 6.2 billion yen in fiscal 1998, as a result
of writing off the entire underfunding in its retirement
program.  This is the first time in seven years the major
truck maker posted group operating and net losses.

Group sales fell 7% in fiscal 1999, as poor truck sales
reduced domestic overall vehicle sales by 15% to 77,000
units and by 3% in overseas markets.

Domestic operating loss totaled 46.3 billion yen, compared
with a profit of 1.9 billion yen a year earlier. It also
suffered operating losses in Australia and Poland.
Operating profit also declined sharply in North America as
a result of inventory adjustments.

For the current term ending March 2001, Isuzu expects group
sales to rise 7% to 1.61 trillion yen. Group operating
profit is projected at 15 billion yen and group net profit
at 3 billion yen. Although the yen's appreciation is
expected to reduce the operating balance by some 6 billion
yen, this will be covered by 24 billion yen in savings from
restructuring and 40 billion yen in cost reductions,
company officials said.  (Nikkei  26-May-2000)

NAMIHAYA BANK: Daiwa Bank Group likely to take over
---------------------------------------------------
Daiwa Bank (8319) and its group firms are likely to take
over the operations of Namihaya Bank, it was learned
Thursday. The second-tier regional bank failed in August
1999.

Bank of Ikeda (8375) is also a candidate to acquire the
business but financial administrators for Namihaya Bank
intend to recommend Daiwa Bank as their first choice to the
Financial Reconstruction Commission. The commission will
decide the matter by mid-June.

Daiwa Bank is prepared to accept loans classified as normal
via its affiliate, Kinki Osaka Bank (8371).  According to
the Financial Supervisory Agency, Namihaya Bank's
liabilities exceeded assets by 116.1 billion yen at the end
of March 1999. (Nikkei  26-May-2000)

NIPPON TEL.& TEL.CORP.: Sinks into red over pension losses
----------------------------------------------------------
Nippon Telegraph & Telephone Corp. (9432) reported Friday
that it posted group net loss of Y67.81 billion for the
fiscal year ended March 31, after a net profit of Y602.69
billion a year ago.

Extraordinary losses of Y755.01 billion to make up a
shortfall in the telecommunications giant's pension fund
pushed the company into the red, it said.  NTT reported
group pretax profit of Y825.04 billion, up 27% compared
with a year earlier.  Group revenue rose 7.1% to Y10.421
trillion, while operating profit was up 13% on year at
Y980.30 billion, NTT reported.

It was the first full-year earnings report issued by the
NTT since its reorganization into a holding company
structure on July 1, 1999.  Under the reorganization NTT
was split into three separate units - NTT East Corp., NTT
West Corp. - which operate domestic telecommunications
network, and NTT Communications which manages the group's
long-distance and international call services.

For last fiscal year, NTT East, which runs services in a
region that includes the Tokyo area, posted net loss of
Y157.25 billion and operating profit of Y70.74 billion on
revenue of Y1.977 trillion.  NTT West, which runs services
in the south and west of Japan, posted a net loss of
Y239.24 billion and operating loss of Y27.83 billion on
revenue of Y1.883 trillion.

On Thursday, NTT Communications said it generated net
profit of Y72.8 billion and pretax profit of Y127.7 billion
on operating revenue of Y1.075 trillion.  For the current
fiscal year ending March 2001, NTT forecasts group net
profit of Y99 billion on revenue of Y10.827 trillion and
pretax profit of Y675 billion.

NTT said that revenue from Internet and data transmission
services accounted for 20%, or about Y2.1 trillion of total
group revenue last fiscal year.  In the previous year
revenue from this area accounted for about 16.8%, or about
Y1.6 trillion, of total revenue. In the current fiscal year
NTT forecasts this proportion will rise to about 24.7%,
accounting for revenue of about Y2.7 trillion.

Conversely, revenue from analogue fixed-line services are
set to drop from about Y4.7 trillion last fiscal year to
about Y4.3 trillion in the current year, NTT said. Mobile
communications services operated by group company NTT
DoCoMo Inc. (9437) accounted for the remaining 34.6% of
group revenue last year, NTT added.

Last fiscal year marked the first year when combined
contributions from mobile, data and Internet services have
exceeded revenues from analogue and fixed-line services,
NTT said. The company forecasts that this proportion will
rise to more than 60% in the current fiscal year.  NTT said
that group capital expenditures totaled Y2.729 trillion
last year versus Y3.088 billion a year before. The company
projects that capital expenditures will fall to Y2.529
trillion in the current fiscal year, a spokesman said.

On a parent basis, NTT posted a net profit of Y97.07
billion and pretax profit of Y117.57 billion on revenue of
Y1.697 trillion. In the previous year, NTT recorded net
profit of Y386.21 billion and pretax profit of Y237.37
billion on parent revenue of Y6.137 billion.

The large changes in the parent earnings figures reflect
the reorganization of the parent company last July, when
most of its operations were made into separate group units.
Figures for last fiscal year include the four months when
the parent company still included the businesses now
operated by NTT East, NTT West and NTT Communications.

NTT will payout a cumulative per share cash dividend of
Y5,000 for the last fiscal year.  For the current fiscal
year, which includes forecasts for the holding company
only, NTT estimates parent net profit of Y127 billion and
pretax profit of Y78 billion on revenue of Y323 billion.
NTT plans a dividend of Y5,000 for the year.  (Nikkei  26-
May-2000)

SAISON GROUP: Ponders winding up luxury goods store
---------------------------------------------------
Saison Group, which operates Seibu Department Stores Ltd.,
is considering liquidating Pisa, a retailer specializing in
luxury clothing and jewelry.

Pisa's largest shareholder, Seiyo Corp., another Saison
Group firm, will be wound up by July. Pisa's two outlets
will be transferred to a Seibu Department Stores affiliate
by the end of June.

Seiyo holds a 49% stake in Pisa, with Seibu Department
Stores owning a 43% share. Although Saison and its lenders
had agreed in 1995 to postpone winding up Pisa for five
years, Seiyo's liquidation plan includes the luxury goods
store, whose debts total some 100 billion yen from
speculation in property and paintings.  Saison hopes to cut
its losses to 80-90 billion yen through the liquidation of
Seiyo and Pisa. (Nikkei  26-May-2000)

TAKARA CO.: To liquidate three subsidiaries
-------------------------------------------
Toy maker Takara Co. (7969) plans to liquidate three of its
10 subsidiaries and restructure the businesses within its
group to improve the group's financial health.

On June 21, Takara will transfer the jigsaw puzzle
operations of its subsidiary Central Hobby Co. to Epoch
Co., a midsize toy maker.  By the end of June, the gift
cards business of Central Hobby and all the operations of
subsidiary Galson Co. will be transferred to Dreams Come
True Co., a subsidiary that makes and sells small gift
items. Both Central Hobby and Galson will be liquidated in
October.

Dreams Come True is expected to post 3 billion yen in sales
in fiscal 2000, up 150% on the year, and 60 million yen in
pretax profit, 7.5 times greater than the year before. It
hopes to go public in 2002.

Takara is also considering liquidating another subsidiary
that makes molds, and it will reconsider the management of
unprofitable divisions at Takara Amusement Co., a
subsidiary that operates amusement parks.  Takara expects
to record a consolidated net loss of about 15 billion yen
in fiscal 1999 due to poor toy sales and extraordinary
losses incurred from affiliated businesses.

Four subsidiaries are expected to post a combined 1.5
billion yen in net losses.  This fiscal year, the toy maker
hopes to turn a net profit at its remaining seven
subsidiaries. (Nikkei  26-May-2000)

YAMAHA CORP.: Losses widen due to massive special losses
--------------------------------------------------------
Yamaha Corp. (7951) said Friday that its consolidated net
losses for the fiscal year ended March 31 deepened to
Y40.78 billion, compared with the year-earlier loss of
Y15.88 billion, citing massive special losses related to
retirement payments and restructuring.

The Japanese musical instrument maker said its group sales
slipped 6.4% to Y527.90 billion. The company said its sales
were squeezed by flagging domestic demand for musical
instruments and the yen's rapid advance.

Its electronics equipment sales tumbled as a result of the
March 31 termination of thin-film magnetic heads
production. The company pulled out of this business field,
unable to cope with stiff competition and the falling
number of hard disks employed per unit in hard disk drives.

By region, its domestic sales fell 4.5% to Y308.04 billion,
while overseas sales showed a more rapid decline of 8.9% to
Y219.86 billion.  But favorable performances by its
subsidiaries underpinned the climb into the black on
operating and pretax levels.  It turned around group
operating profit to Y8.08 billion, compared with a loss of
Y97 million the year before. It generated a pretax profit
of Y8.51 billion, considerably better than the loss of
Y3.70 billion the year before.

However, the heavier burden of special losses cut deep into
its net results. Its special losses ballooned to Y69.75
billion from the year-earlier losses of Y4.10 billion.
Special losses in the latest reporting period included a
loss from payments related to its early retirement program
and a loss associated with the withdrawal from magnetic
head business. Expenses related to underfunded retirement
and pension obligations also helped boost the special loss
amount.

On a parent only basis, Yamaha reported it suffered a
pretax loss of Y7.39 billion, compared with a loss of
Y12.59 billion a year ago. Parent sales fell 5.8% to
Y369.13 billion.

For the current fiscal year ending March 31, Yamaha
estimates a group net profit of Y12 billion, pretax profit
of Y17 billion and sales of Y520 billion. Parent only
pretax profit is pegged at Y8 billion, with net profit of
Y7 billion and sales of Y330 billion. It will raise the
dividend payment to Y6 per share, compared with a planned
Y3 payment for the just ended term. (Nikkei  26-May-2000)


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

DAEHAN INVEST.TRUST: Kamco injects cash
KOREA INVEST. TRUST: Kamco injects cash
---------------------------------------
Korea Asset Management Corp., or Kamco, said it injected
around two trillion won ($1.77 billion) in cash into ailing
Korea Investment Trust Co. and Daehan Investment Trust Co.

A spokeswoman at Kamco said it injected 1.22 trillion won
into Korea Investment Trust and 775 billion won into Daehan
Investment Trust.  The public fund injection is part of the
government's plan to place a total of 4.9 trillion won into
the two investment trust companies by the end of June.
(Dow Jones Wire  26-May-2000)

DAEWOO GROUP: Debt buyout from foreign creditors starts
-------------------------------------------------------
The Daewoo Group Restructuring Coordination Committee said
yesterday that it has started the process to purchase
Daewoo's debts from foreign creditors.

The committee intends to hold road shows in eight cities
including Singapore, New York and Sydney from June 5 to 14
to explain to foreign creditors how it will buy out their
claims on Daewoo.

"We will receive applications from foreign creditors by the
end of next month, screen their claims for five to eight
weeks and complete payments by the end of August," a
committee official said.

The committee will set up a special-purpose company (SPC)
to carry out the debt buyout process. Some $1.7 billion is
expected to be needed to purchase claims from overseas
creditors which total $5.5 billion in face value.  The
debts purchased by the SPC will be sold to the state-run
Korea Asset Management Co. which will recoup the costs by
securitizing or reselling the assets. (The Korea Herald
27-May-2000)

HYUNDAI ENGIN. & CONST.: KEB to contingent fund support
-------------------------------------------------------
The main creditor of Hyundai Group, Korea Exchange Bank,
will provide emergency funds of 50 billion won (US$44.4
million) to Hyundai provided they vigorously proceed with
restructuring.

The emergency funding support for Hyundai Engineering &
Construction and other Hyundai affiliates facing liquidity
problems will be contingent on strong restructuring efforts
to include the complete removal of Honorary Chairman Chung
Ju-yung from all management responsibilities, an early
spin-off of affiliates and sales of assets. (Asia Pulse
26-May-2000)

HYUNDAI GROUP: Cash flow problem finally confirmed
--------------------------------------------------
Although officials at the Hyundai Group and the government
had dismissed them as groundless until now, rumors of cash
flow problems at Korea's largest conglomerate were finally
confirmed yesterday.

The news that Hyundai Chairman Chong Mong-hun held a
hastily-arranged meeting with the head of its main creditor
bank to seek liquidity support sent the stock market
plunging after a strong recovery the previous day. Of the
25 listed Hyundai Group subsidiaries, 20 units saw their
shares decline, with Hyundai Engineering and Construction
Co. falling 10 percent within two hours of trading.

However, over a longer term, market watchers said the
revelation provided a stepping stone for progress, while
lowering a significant amount of uncertainties.

"Although problems exist with the overall management
structure of the conglomerate, Hyundai's cash flow problems
appear to be short-term," said an analyst at Shinhan
Securities on condition of anonymity. "But unlike the
situation that brought down Daewoo, Hyundai's units are
still generating profits."

He added that it was inevitable for Hyundai to ask for some
sort of financial breathing space sooner or later and that
the news had reduced a lot of tension that had been
building up, due to its failure to provide adequate
information regarding its cash flow situation.

Rumors of Hyundai's cash flow problems began circulation at
the end of last month, when the government announced
measures to clean up bad debts at the nation's top
investment trust companies. While the Financial Supervisory
Commission said it would provide emergency support funds to
Daehan and Korea investment trusts, it left the Hyundai
Group with the job of cleaning up its own financial unit,
Hyundai Investment Trust & Securities Co.

The government order led investors to question whether the
conglomerate had enough cash reserves to shoulder the debts
of the investment trust. The prime target of jitters among
investors was Hyundai Engineering and Constru-ction Co.,
which had fallen victim to a construction market that
continued to flounder, while other industrial sectors
posted remarkable growth rates.

Serving to alleviate further market anxiety, Korea Exchange
Bank is expected to push the conglomerate to go through
with a stronger set of reforms.

"I told Chairman Chung that it was crucial to gain the
trust of the market," Kim, the head of Korea Exchange Bank
said. "If Hyundai's self rescue plans do not gain the trust
of the market, then we will ask for a better plan." (The
Korea Herald  27-May-2000)

HYUNDAI GROUP: To get W350B rescue fund
---------------------------------------
The government and the creditors of Hyundai group decided
to assist a total of W350 billion rescue fund to help the
nation's largest business group overcome its current cash
crunch.

In response to the decision, Hyundai group announced it
would created up to W400 billion through its self-saving
plan.  The Friday announcement of the package follows on
the heels of an agreement by Korea Exchange Bank (KEB),
which is the major creditor bank of Hyundai, to extend
additional lines of credit amounting to W50 billion each to
group subsidiaries Hyundai Engineering and Construction
(HEC) and Hyundai Merchant Marine (HMM) up to the end of
June.

Representatives of Hyundai's creditors said that in
exchange for the new loans and debt rescheduling, they plan
to call for the group to make strong self-rescue efforts,
including the retirement of founder and honorary chair
Chung Ju-yung from front-line management responsibilities.

A dispute is likely to erupt, with the group facing off
against the government and its creditors, given that
Hyundai continued to dodge government and creditor pressure
to make self-rescue efforts by maintaining that the group
has not received any official orders to restructure.

A high-ranking government official said a few Hyundai
subsidiaries have been experiencing serious difficulties in
getting extensions on the maturities of corporate bonds due
to the tightening of local money markets. Meanwhile,
Financial Supervisory Commission (FSC) Chairman Lee Yong-
Keun remarked Friday that the current liquidity crunch at
the nation's largest business group stems from a bottleneck
in the cash flow of HEC only and that the cash flows at
other subsidiaries are fine.

According to Lee, a new loan of W50 billion will be enough
for flagship construction unit of the Hyundai group to make
it through its current cash squeeze, which he said was
temporary.  Chung Mong-hun, Hyundai's chair, had paid a
visit to newly appointed KEB president Kim Kyong-lim at the
latter's office Friday morning. After the meeting, Kim
revealed to reporters that the bank had decided on May 17
to extend an additional W50 billion in credit to HMM and
that an agreement had also been reached this past Tuesday
to make the same amount available to HEC.

One financial analyst said the liquidity difficulties at
Hyundai have been greatly aggravated since a power struggle
between two Chung heirs broke out in April. A highly public
battle between current group chair Chung Mong-hun and
automotive sub-group head Chung Mong-koo for control of the
group sent the share prices of Hyundai firms tumbling, as
well as damaging the group's creditability, with banks
refusing to roll over loans to Hyundai firms.

Despite all the turmoil, government and Hyundai's creditors
seem to have ultimately determined that there is, in fact,
no liquidity crisis at Hyundai. As of the end of April,
Hyundai's total debt amounted to W31 trillion, 75% of which
is in the form of long-term debt due to mature after a
year, and with just 25% of the total debt due to mature
within a year, the government and creditors of the group
have deemed Hyundai­_s liquidity levels to be satisfactory.

Hyundai has been saying all along that there would be no
liquidity crisis, saying it expected W4 trillion in
operation profits this year would add to W5 trillion in
liquid funds. (Digital Chosun  26-May-2000)

HYUNDAI GROUP: Emergency loan sparks Seoul market drop
------------------------------------------------------
The Seoul stock market plunged by 6.1 per cent on Friday on
renewed fears over the financial stability of the Hyundai
group, South Korea's biggest conglomerate.

The selling was provoked by news that Korea Exchange Bank
(KEB), the group's main creditor bank, gave 100bn Won
($88m) in emergency loans to Hyundai's construction and
shipping businesses to cover "short-term liquidity
problems."

KEB and the government said the cash crunch was temporary
and the Hyundai groups was not suffering serious liquidity
problems.  But these assurances did not convince investors
who believe the group's financial problems might be bigger
than expected. Most Hyundai shares dropped by their daily
limit of 15 per cent on Friday.

Share prices for Hyundai companies have fallen heavily this
year because of worries the group might be financially
overstretched after a spree of corporate acquisitions,
including Kia Motors and LG Semicon.  Hyundai's credibility
in local financial markets has also been harmed by an
embarrassing feud between two sons of Chung Ju-yung,
Hyundai's founder, over the control of the group, which has
raised questions about management accountability to outside
shareholders.

Lee Yong-keun, the head of the Financial Supervisory
Commission, said the Hyundai units had fallen victim to a
funding mismatch due to a delay in sales receipts, while
financial institutions were cautious in extending the
maturity of corporate bonds.  This reflects worries among
investment trust companies, the biggest buyers of bonds in
Korea, about the high debt levels of big conglomerates, or
chaebol. The ITCs suffered large losses from the collapse
of the Daewoo group last year.

The announcement of the emergency loans comes a day after
Mr Chung gave up management control of Hyundai by selling
his stakes to a son, Chung Mong-hun, the Hyundai chairman.
The FSC indicated Mr Chung had taken the action in response
to a demand by KEB, which allegedly sought to reduce the
influence of the frail 84-year-old founder on management.
But KEB said it had made no such conditions for the new
loans.

Mr Chung will use profits from the stock sale to become the
biggest shareholder in Hyundai Motor, which is scheduled to
be separated from the rest of the group next month under a
plan to divide the chaebol among his sons.  Hyundai said
the Mr Chung's purchase of a 9 per cent stake in Hyundai
Motor is meant to increase the company's defences against a
possible hostile takeover bid.

Hyundai Motor, Korea's biggest carmaker with a domestic
market share of 75 per cent, is vulnerable to a takeover
bid since its market capitalisation has fallen to close to
$2bn, while friendly shareholders control only 16.1 per
cent of the carmaker.  Analysts have speculated that
foreign carmakers might be tempted to make a hostile bid
for Hyundai Motor rather than acquiring insolvent Daewoo
Motor, Korea's second biggest carmaker, which is being sold
in an international auction.  (Financial Times  27-May-
2000)

HYUNDAI GROUP: Affiliates offered emergency funds, too
------------------------------------------------------
Hyundai Group's main creditor, Korea Exchange Bank, has
said it is willing to provide US$44.2 million in emergency
funds to help South Korea's largest conglomerate avert a
possible liquidity crunch at one of its companies.

Hyundai has not yet taken the loan for the unit, Hyundai
Engineering and Construction, but a Korea Exchange Bank
official said bank representatives and Hyundai Group
chairman Chung Mong-hun are scheduled to meet Friday.

Another Hyundai unit, Hyundai Merchant Marine, was offered
US$44.2 million in emergency loans last week; it has
already used US$36 million already.  Several local
investment trusts facing financial difficulties had
recently declined to roll over commercial paper issued by
many conglomerates, including Hyundai. (Channel News  26-
May-2000)


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

HO WAH GENTING BHD: Gets warrant holders' nod for scheme
--------------------------------------------------------
Ho Wah Genting Bhd, which has obtained approval from
warrant-holders for its proposed restructuring scheme, will
seek the High Court's sanction for the scheme not later
than mid-June.

The scheme was expected to be completed in August or
September, managing director William Teo said after a
meeting of the company's warrant-holders in Kuala Lumpur
yesterday.  The proposal will result in Ho Wah Genting now
protected under Section 176 of the Companies Act emerging
from its difficulties with a healthier balance sheet, a new
business focus and new board of directors.

Teo said Ho Wah Genting had already obtained the green
light from the Securities Commission, the Foreign
Investment Committee, Bank Negara and the International
Trade and Industry Ministry for the scheme.  He said that
upon obtaining the court sanction the company would seek
the KLSE's approval for the relisting and transferring of
its shares to the main board.

A crucial step in the restructuring scheme involves Ho Wah
Genting acquiring 100% of Kintron Sdn Bhd in a reverse
takeover via the issuance of 70 million shares as purchase
consideration.  Kintron is a maker of moulded power supply
cord sets and cable assemblies for electrical and
electronic devices and equipment, mainly for the export
markets.

The restructuring will result in Ho Wah Genting changing
its focus from transport and coach-building to just the
cables and wires business.  It will also cut Ho Wah
Genting's debt significantly and enable the company, which
incurred a pre-tax loss of RM22.87mil last year, to return
to the black this year.

On completion of Ho Wah Genting's restructuring, Kintron
Holdings Sdn Bhd (which owns Kintron Sdn Bhd) would end up
with about a 48% interest in Ho Wah Genting.  Teo said
there would be a new management line-up before the
completion of the scheme.  He also said Ho Wah Genting had
not finalised any deals pertaining to the proposed sale of
its assets and subsidiaries. "We are not in a hurry to sell
them. We will sell when the price is right."  (The Star
27-May-2000)

L & M EAST MALAYSIA: KLSE told of year-old debt settlement
----------------------------------------------------------
The board of directors of L&M Corp Bhd has informed the
KLSE that its wholly-owned subsidiary, L&M East Malaysia
Sdn Bhd, had entered into a debt settlement agreement a
year ago which had not been announced to the exchange.

"Subsequent to the appointment of the new management team,
they have discovered that a significant corporate exercise
undertaken by L&M East Malaysia was not announced to the
KLSE," said Bumiputra Merchant Bankers Bhd (BMBB) on the
company's behalf.

According to the announcement, L&M East Malaysia had
entered into a settlement agreement on May 28 last year
with SASA Development (Sabah) Sdn Bhd and Twin Guard
Holdings Sdn Bhd for a debt settlement.  SASA Development,
which had the rights to develop a piece of land in Sabah
into a multi storey car park cum office/commercial parcels
(to be called KK Plaza), had awarded the contract works to
L&M East Malaysia.

Both parties had agreed that the final contract sum/value
for Phase 1 of KK Plaza would be RM39.8mil.  L&M East
Malaysia subsequently appointed Twin Guard the sub-
contractor for Phase 1, and had agreed that its final sub-
contractor's value to Twin Guard would be RM32.96mil.

All three parties have agreed that upon completion of Phase
1, the total amount due from SASA Development to L&M East
Malaysia shall be RM20.7mil, being the outstanding balance
as at May 29, 1999.  At the same time, the total amount due
from L&M East Malaysia to Twin Guard was to be RM15.29mil.

SASA Development had also agreed to sell to Twin Guard,
with the consent of L&M East Malaysia, the whole of the
basement floor of KK Plaza free of encumbrances but subject
to certain terms and conditions.  Pursuant to the above,
all three parties have agreed to settle the amount owing by
SASA Development to L&M East Malaysia via a tripartite
contra basis whereby SASA Development will sell the
basement floor to Twin Guard.

The debt settlement which will be satisfied entirely in
cash will not have any effect on the earnings or non-
tangible assets of the L&M Corp group. However, it requires
the ratification of L&M Corp shareholders at an EGM to be
convened later, BMBB which had been appointed on March 6 as
adviser said.

Financially stressed L&M Corp which is undergoing a
restructuring exercise had announced on Feb 21 its
memorandum of understanding (MoU) with three individuals--
Sim Kay Huan, Wong Ha and Datuk Yusuf @ Mohd Yusuf Kamari.
Within 45 days of the MoU, the three are to propose a
scheme of arrangement that will satisfy its shareholders,
creditors and the relevant authorities. (The Star  29-May-
2000)

PELANGI AIRWAYS: Seeks RM40M new capital
----------------------------------------
Pelangi Airways, having stopped almost all of its domestic
flights since the beginning of last year, is seeking a RM40
million capital injection from its shareholders to stay in
business.

The airline started operations in 1988 and was profitable
up till the economic downturn brought about by the Asian
financial crisis.

"Pelangi Airways recorded about RM30 million in losses in
1998 but the amount fell to RM13 million last year," a
source close to the airline told Business Times.

A board meeting was held early this month where the
discussions centred on the future of the financially-
troubled airline, the source added.

"Shareholders want something done and the company is
working on an exercise to strengthen the airline's
financial position to be effected within six months."

The airline's main problems are shortage of aircraft and
high operating costs. It is understood that the new capital
is intended for the purchase of new planes.

"If the RM40 million capital injection is not approved,
Pelangi Airways may have to reduce the number of its staff
to cut down on operating costs," the source said.

Pelangi Airways' major equity holders are state
governments, namely Terengganu (38 per cent), Selangor
(20.5 per cent), Perak (15.0 per cent) and Malacca (6.0 per
cent).  The only private company having a stake in the
airline is Naluri Bhd, with 20.5 per cent. This equity
structure has been in place for the past six years.

Naluri is also the current single largest shareholder of
Malaysia Airlines, the country's national carrier which
operates a fleet of 92 aircraft and flies to 114
destinations worldwide.  Naluri recently entered into an
agreement with its creditors on the restructuring of RM1
billion in debts, which include raising funds within the
next two years through the disposal of assets to retire at
least 50 per cent of its secured debt obligations.

The Government has given Pelangi Airways the rights to 32
international and 32 domestic flight destinations. However,
the airline has not been able to take full advantage of it
because of capacity constraints. It only has two Fokker 50
and three Dornier 228, which were acquired in 1992.

Pelangi Airways stopped its domestic flights to Kuala
Terengganu, Kota Baru, Kuantan and Alor Star last year but
continues to serve Kerteh as it is the only airline flying
there.  It is currently focusing on international flights,
mainly to Indonesia, due to higher passenger traffic and
fares.

The airline, which operates from the Sultan Abdul Aziz Shah
International Airport in Subang, flies from Kuala Lumpur to
Palembang three times a week, Kuala Lumpur-Pekan Baru-
Malacca four times a week and Kuala Lumpur to Padang three
times a week.  (Business Times  27-May-2000)

PROMET: To change core business
-------------------------------
Promet intends to alter its core operations from marine
engineering and rig building to property development. The
Malaysian company obtained a court restraining order in
July, 1998.

The court order was obtained to hold off creditors of the
company. The chief executive of Promet, Soh Chee Wen, says
that the decision to move away from marine engineering
and rig building was made because of the lack of
opportunities in the oil rig business. The property
development sector is not in its best state, either. (ABIX
- Business Intelligence Australia Pty Ltd. 26-May-2000)

TAI WAH GARMENTS: Revises restructuring scheme
----------------------------------------------
Tai Wah Garments Manufacturing Bhd (TWGB) has unveiled a
revised restructuring scheme involving five exercises to be
carried out simultaneously.

The first involves a management buy-in via Real Platinum
Sdn Bhd for the subscription of 38 million shares or 31.67%
of the group's enlarged issued and paid-up share capital
before the exercise of warrants.  TWGB said in a statement
that an agreement was signed with the management team of
wholly-owned subsidiary, Tai Wah Garment Industries Sdn Bhd
(TWGI), for the special issue.

The proposed special issue via Real Platinum was intended
to motivate the key management who had been involved in
turning around TWGI's operations. TWGB's improved
performance was attributed to the general recovery in the
economy and good management, it said.

The group also signed an agreement with chairman Datuk
Jaafar Indot via Alafas Sdn Bhd for the subscription of
24.33 million shares or 20.3% of the enlarged issued and
paid-up share capital.  The participation of the chairman
"signifies the commitment of the key participants of this
restructuring exercise,'' the statement said.

In addition, another bumiputra institutional investor would
be invited to take up 10 million (8.33%) of TWGB shares.
TWGB decided to proceed with its restructuring plan with no
injection of new businesses or assets except for fresh
funds injection via the management buy-in, the special
bumiputra issue and a proposed rights issue with warrants.

The other four exercises involve a proposed capital
reduction and consolidation, debt reconstruction, rights
issue with warrants and the disposal of non-core assets.
The proposed capital reduction and consolidation and debt
reconstruction schemes are aimed at giving a fair and
equitable settlement to all stakeholders, the statement
said.

It would also provide the restructured group with a
stronger foundation and financial footing to start afresh,
it added.  The proposed rights issue with warrants and
special issue would raise the required funds for settling
TWGB's borrowings pursuant to the proposed debt
reconstruction.

It would also provide funds for future working capital,
resulting in improvement in the group's cashflow and
financial position.  The statement said TWGB would also
streamline its existing activities by disposing of non-core
subsidiaries and assets, namely Tai Wah Ventures Sdn Bhd,
Tai Wah Development Sdn Bhd and Tai Wah Garments
International Sdn Bhd. (The Star  27-May-2000)

TIME ENGINEERING: Hopes to seal deal before June 8
--------------------------------------------------
Time Engineering Bhd hopes to seal a deal to sell 30
percent of wholly- owned Time dotCom Bhd to Khazanah
Nasional Bhd before June 8 when its creditors will meet to
decide on the group's debt workout scheme.

"Khazanah is aware of Time creditors' meeting and we hope
to conclude a definitive agreement with Khazanah before
then," said Time's managing director, Mr Phang Shyue Ming.

Phang, together with Renong Bhd executive chairman Tan Sri
Halim Saad and managing director Encik Ahmad Pardas Senin
were speaking to reporters after presenting financial
results of the Renong group in Kuala Lumpur yesterday.
Also present was managing director of United Engineers
(Malaysia) Bhd (UEM) Datuk Ramli Mohamed.  Halim said he
expects Khazanah to pay for the Time dotCom stake in
cash and the two parties would decide on a technology
partner to be brought in.

The Government investment arm's entry is crucial to Time's
plans to repay borrowings amounting to some RM5 billion.
The proposal also involves the flotation of Time dotCom,
the application for which was submitted to the Securities
Commission in April.  The initial public offer (IPO) is
expected to take place in September.

Assuming that Khazanah pays the IPO price of RM3.30 per
Time dotCom share, the investment agency will have to fork
out RM2.5 billion for 30 percent of the company's expected
RM8.3 billion paid-up share capital.  As for the technology
partner, which has not been identified, Halim indicated his
preference for a foreign company which will take up a
maximum of 10 per cent of Time dotCom from Khazanah.

Asked how he expects Time's creditors to vote on the debt
restructuring scheme next month, Halim said:  "They would
have no reason to object because they will get 100 per
cent in cash in September. If you don't agree, it will take
longer to get your money."

Meanwhile, Renong announced a higher net profit of RM198.8
million for the first nine months to March 31 2000, arising
from increased land sales by its subsidiary Prolink
Development Sdn Bhd and improved profits by UEM.  At the
pre-tax level, Renong made RM300.7 million in the first
three quarters compared to a loss of RM1.33 billion in the
previous corresponding period.

"We can see that the companies in the Renong Group have
turned around, they are now recovering, and we are
witnessing growth across the board," Ahmad Pardas said.

Renong is one of the country's largest industrial groups
with 11 listed companies in its stable.  They are UEM,
Time, Park May Bhd, Kinta Kellas Plc, Ho Hup Construction
Co Bhd, Projek Penyelenggaraan Lebuhraya Bhd, Cement
Industries of Malaysia Bhd, Faber Group Bhd, Crest
Petroleum Bhd, EPE Power Corp Bhd and Pharmaniaga Bhd.

Despite the overall improvement in performance, many of the
companies are still experiencing high levels of interest
charges. As such, Renong is banking on the success of its
de-gearing plan, which involves asset disposals and
subsidiary listings, for a speedier recovery.  Renong is
optimistic that it will list Projek Lebuhraya Utara-Selatan
Bhd (PLUS), Time dotCom and Prolink by the end of this
year.

It is also hoping to raise between RM1.7 billion and RM2.1
billion from the disposal of interests in Commerce Asset-
Holding Bhd (CAHB).  Alternatively, the group would swap
CAHB shares for the PLUS bonds. Renong owns 12.4 per cent
of CAHB.  In addition, it expects to recoup RM649 million
of debt from Time Investments (Cayman) Ltd in the next few
months. Renong has forecast that it will have a positive
cash position of RM1.5 billion by July 2001.

As at March 31 this year, the value of Renong's assets had
surged by 56 per cent to RM13.1 billion, thanks to an
improved stock market, from RM8.4 billion in September last
year. (Business Times  26-May-2000)


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

ITV: SCB deal seen as key to plan, Nation opposes 40% stake
-----------------------------------------------------------
ITV shareholders privately admit they lack the funds to
recapitalise the television station unless Siam Commercial
Bank agrees to restructure outstanding debt.

The bank is negotiating with Shin Corporations Plc on a
restructuring plan which would give the listed telecom firm
a 40% holding in iTV following a capital writedown and
debt-for-equity swap which would reduce the holdings of
other shareholders.  Under the bank's plan, Shin would
control 40%, Siam Commercial Bank and the Crown Property
Bureau 40%, with the rest held by other shareholders.

However, the Nation Multimedia Group, which now controls
10% of iTV, says existing shareholders should be allowed to
maintain their shareholdings and wants a 25% cap on any one
particular investor, to help maintain the station's
independence.

Nation editor-in-chief Suthichai Yoon has expressed concern
that giving a major stake to Shin could jeopardise iTV's
editorial policy, particularly given Shin's major
shareholder is Thai Rak Thai leader Thaksin Shinawatra.
One iTV board member said an informal survey of other
shareholders, such as Daily News, JSL Co and the Kantana
Group, resulted in little interest in the restructuring
plan suggested by Nation group.

"Most of the other shareholders have little interest in
further investment in iTV under the current economy, and
given the fact that the company has posted losses ever
since it opened in 1995," the director said.

Several iTV shareholders said they were reluctant to
publicly comment on the station's restructuring plan, for
fear of antagonising either Siam Commercial Bank or Nation
Multimedia. Others expressed uncertainty about whether the
Nation plan would help the station reverse its financial
woes.

"Management and the board know well that Nation takes
advantage of the firm in some areas, such as in low airtime
charges and booking production and news expenses with the
firm but using the content for the group's newspapers," one
source said.

Nation Multimedia currently produces several news
programmes for iTV, but iTV executives said privately that
the Nation was not above leveraging its interest in the
station to help promote its print media interests, namely
The Nation and Krungthep Turakit.

"The shareholders have no reason to invest further with
limited prospects for returns. It's nothing personal
against the Nation or Mr Suthichai, but rather pure
business," one shareholder said.

The dispute over the station's restructuring has solidified
battle lines among staff at iTV. Several editorial staff,
formerly with the Nation, have sought help from the
government to block the Shin sale. Others have taken the
line that without the Nation's assistance in producing the
news programmes, iTV would never have become as successful
as it is now.

In response, other members have rallied to argue that the
position taken by former Nation employees did not represent
the entire 850-strong staff. One letter released yesterday
in the name of "iTV employees" said restructuring was
crucial for the company's survival, and that staff should
consult among themselves first before taking a position in
the firm's name.

"We know that some members have been promised promotions if
the Nation group wins the battle for the restructuring
plan," one iTV employee said.

Meanwhile, Prakit Pradipasen, iTV chairman, rebutted
allegations that The Nation was solely responsible for the
station's strong news reputation. He said the station had
many separate professional editorial teams aside from those
from the Nation group. "The quality of iTV's news
programmes comes from our teams, not from Mr Suthichai," Mr
Prakit said.

An executive of Siam Commercial Bank said iTV's situation
should be resolved next month, ahead of a 500-million-baht
debt payment in July. (Bangkok Post  27-May-2000)

SUBMICRON TECHNOLOGY: Creditors to decide fate June 23
------------------------------------------------------
Creditors of cash-strapped Submicron Technology will decide
whether it will go bankrupt on June 23, according to its
chief executive Charn Usawachoke.

Even though the company is presently under receivership on
the orders of the Central Bankruptcy Court, Charn still
hopes creditors will allow him a chance to revive the
wafer-making plant, his last property.

"After I sounded out the creditors, almost all of them,
particularly Bangkok Bank, did not want Submicron
Technology to collapse. I am concerned about a nationalised
Siam City Bank, because the current management team does
not want to make any decisions and insists that my firm
should go bankrupt," he said.

To survive, the indebted company needs two-thirds of
creditors to vote in favour of the firm's plan.
The company owes Bt19.250 billion including Bt5 billion
owed to Bangkok Bank, Bt2.5 billion to Krung Thai Bank, Bt2
billion to Bangkok Metropolitan Bank, Bt1.5 billion by Siam
City Bank, US$80 million (Bt3.13 billion) to the Industrial
Finance Corporation of Thailand and Bt808 million to
Standard Chartered Nakornthon Bank.

Charn said he was negotiating with a number of foreign
funds, including some from the US, for funds to bail out
the company.  The battered wafer plant still needs another
US$800 million or about Bt31 billion to operate. It is
under construction and is expected to be functional this
year after a long delay.

In 1996, a crisis loomed in Charn's semiconductor empire,
led by Alphatec Technology, following departure of US
partner Submicron Technology and its failure to raise huge
funds from the stock market to finance the building of the
wafer fabrication plant.Still, commercial banks have cut
their credit lines to Charn's firms, resulting in shortfall
of liquidity.

"I'm confident that Submicron will recover within two years
if the creditors give me the opportunity and partners
inject the needed capital," he said.

He cited the burgeoning industry as reason for expecting
such a rapid turnaround.  Meanwhile the Industry Ministry's
Industrial Economics Department (IED) issued a press
statement on Friday saying it would invite domestic and
foreign investors to join a government project to invest in
a wafer plant. The invitation came as a result of the
Cabinet's decision in February to set up a joint venture
with the private sector to build the plant, to support
further development of Thailand's high-tech industry.

Private investors interested in participating are required
to submit their investment proposals to the IED by June 30,
department director-general Padejpai Meekhuniam said.
Proposals must include plans for investment, marketing and
technology. Bidders must also declare their financial
statusand historical financial results and state what
infrastructure support they require for the project.

Padejpai said the Industry Ministry and the Science,
Technology and Environment Ministry would coordinate with
related agencies to give state assistance in terms of
funding, investment privilege, manpower and technology,
land, and infrastructure support to the wafer project.

"We will approach the Financial Institutions Development
Fund and other financial sources and ask them to consider
investing or give other kinds of funding support," he said.
(Business Times  29-May-2000)

THAI OIL PLC.: Completes rehabilitation plan
-------------------------------------------
The Central Bankruptcy Court has cancelled the
rehabilitation plan for Thai Oil Plc, since the plan has
been completely implemented.

The cancellation followed a request from Vibhavadee
Administrator, Thaioil's planner, that the company be
allowed to exit the rehabilitation after the complete
implementation of the company's restructuring plan. The
court also said it would hold a hearing on June 19 on a
petition for One Holding to enter business rehabilitation.
One holding owes a a total of 9.2 billion baht to 154
creditors.

The company has proposed appointing Filatex Planner to
prepare the rehabilitation plan, with United Advisory
Service as its financial adviser.  As well, the court has
accepted a petition by Siam Tire Cord to enter
rehabilitation. The company has total debts of 1.68 billion
baht to 109 creditors.  The first hearing in the case will
be held on June 19. (Bangkok Post  27-May-2000)

THAI PETROCHEM.INDUSTRY: Weak baht 'will hit debt revamps'
----------------------------------------------------------
The falling baht will adversely affect debt-restructuring
talks for several Thai corporations and undermine the
confidence of investors, Prachai Leophairatana, CEO of Thai
Petrochemical Industry (TPI), said .

TPI would post foreign exchange losses of about Bt2 billion
for the second quarter ending June 30, if the local
currency stayed weak, at Bt39 to Bt40 to the dollar,
Prachai said.

"Although the cheap baht will help exports, the currency
rate reflects investors' confidence in the economy. It will
cause more difficulty for banks in resolving their NPL
[non-performing loan] problems," he said.

All enterprises with foreign debts will incur higher
foreign exchange losses.  However, TPI's loss would be
compensated by its higher export income, he added.
The appropriate value of the baht should be between Bt35
and Bt37 to the dollar, he said.

"If the baht stays weak for a long period, debt-
restructuring will be tougher for many firms, which could
affect the entire economy. Plus, the restructured debts
could return as NPLs," Prachai said.  (West Clip  29-May-
2000)

WONGPAITOON GROUP PLC: Timetable after reorganization order
-----------------------------------------------------------
Court order for business reorganization Court has
investigated and appointment of the Planner the business
reorganization petition on May 22,2000 and and assets of
the Debtor and all legal rights ordered the business of the
Debtor's shareholders, except for the reorganization and
appointment right to receive dividends, shall be vested in
of the Planner on that day the Planner.

Debtor delivers assets and explanation of its business to
the Planner. The Debtor's executives shall:

(i) without delay from the date on which the As soon as
possible from the Debtor learns of the order for business
date on which the court has reorganization, deliver the
assets, seal, ordered the business accounting ledgers and
documents relating reorganization (should not to the
assets, liabilities and business of be later than 1 month)
the Debtor to the Planner.

(ii) submit to the Planner an explanation of on or before
May 29, 2000 the business and assets of the Debtor within 7
days from the date on which the Debtor learns of the order
of appointment.

However, the Planner may extend the period for submitting
such explanation for a period not exceeding 30 days.

Publication of the Court Order for Business (tentatively
June 22, 2000 Reorganization and Appointment of the Planner
to July 6, 2000). The official receiver shall publish the
order Note: the exact date will be for business
reorganization and appointment of informed later in the
Government Gazette and in no less than 2 widely circulated
daily newspapers within approximately 30 - 45 days after
the court has proclaimed the order and promptly
notify the Registrar of Partnership and Companies.

4. The Creditors shall file applications for Government
Gazatte repayment of debts accrued and unpaid as of May 22,
2000 (tentatively August 6, 2000).

5. Within 14 days after the debts expiration of the period
for submitting the application. The Creditors, the Debtor
or the Planner may of inspect and object to the application
for repayment (tentatively August 6, 2000 repayment) to
August 20,2000).

6. In the case of objection against the application
for repayment, the receiver shall investigate such
application and the objection and then render an order on
the voting right in the Creditor meeting and on the right
of repayment. In the case of no objection, the Creditor
shall have voting rights for the full amount of debts.

7. Within 3 months from the date of publication of the
order appointing the Planner in the Government Gazette, the
Planner shall send the reorganization plan to the receiver.
However,
the court may extend such period up to 2 more times, each
extension shall not exceed 1 month.

8. Upon the receipt of a copy of the reorganization plan,
the receiver shall call a meeting of creditors who have
voting rights as soon as possible to consider the
reorganization plan.The
copy of the reorganization plan and notification of the
date, time, place and agenda of the meeting shall be
delivered to the Creditors who have voting rights, the
Debtor, and the Planner,
and shall be published in daily newspapers at least 10 days
prior to the meeting.

9. The creditors, the Debtor or the Planner may file the
request to amend the reorganization plan to the receiver at
least 3 days prior to the meeting.

10. The Creditor's meeting considers the reorganization
plan and (i) may approve the reorganization plan by a
special resolution and may resolve to appoint a creditor
committee in the amount of not less than 3 persons but not
exceeding 7 persons to monitor the operation of the Plan
Administrator,

(ii) may not approve the reorganization plan as proposed by
the Planner and may resolve to change the Planner to
prepare a new reorganization plan as the case may be. In
the case that the reorganization plan is not approved, the
court shall issue an order canceling the business
reorganization or if a bankruptcy case has been filed
against the Debtor, the court may order to continue the
petition for bankruptcy.

11. The receiver shall notify the Creditors, the Debtor and
the Planner of the date on which the court will consider
the reorganization plan not less than 3 days in advance.

12. If the court approves the reorganization plan, the
court shall notify the Plan administrator and the Planner
of its order. Once the Plan Administrator learns of the
court order, the right and duties of the Planner shall
immediately be vested in the Plan Administrator.

13. In the case that the court does not approve the
reorganization plan, if a bankruptcy case has been filed
against the Debtor, the court may order to continue the
petition for bankruptcy.  The Planner then shall deliver
the assets, seal, order of approval of the accounting
ledgers and documents relating to reorganization plan, the
assets, liabilities and business of the Debtor to the Plan
Administrator without delay.
However, within the period of 2 months from the date on
which the Plan Administrator is informed of the court
approval of the reorganization plan, the Plan Administrator
has the right to refuse assets of the Debtor or rights
under any agreement wherein the obligations exceed the
benefits to be derived from such agreement.  From the date
on which the court approved the reorganiziation play, the
plan administrator starts implementing the plan.  (Stock
Exchange of Thailand  29-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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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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