---

     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, June 14, 2000, Vol. 3, No. 115

                                      Headlines


* A U S T R A L I A *

EMAIL: ASIC asks for disclosure of its break-up plans
EMAIL: No break-up plans


* C H I N A  &  H O N G  K O N G *

GOLDEN WOOD LTD: Facing winding up petition
GUANGDONG INT'L TRUST: Liquidators to sell real estate arm
HONG TAI PLASTIC MATERIAL LTD: Facing winding up petition
S. MEGGA INT'L HLDGS.LTD.: Reports on debt rehab to HKSE


* I N D O N E S I A *

PT INDUSTRI TELEKOMUNIKASI: Restructures debt
PT POLYSINDO EKA PERKASA: Unsecured creditors press case


* K O R E A *

DAEWOO MOTOR: Creditors split units for sell-off
HYUNDAI MOTORS: Financial affiliates to separate
SAEHAN GROUP: Owner to put up 24.7B won to soothe creditors
SAEHAN INDUSTRIES: Enters into debt rescheduling program
SAMSUNG MOTORS: Renault pledging capital, support
SSANGYONG MOTOR: Creditors split units for sell-off


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

FIRST DOMINION PRIME HLDGS.: Restructuring debts
METRO PACIFIC CORP.: May incur losses in next two years
URBAN BANK: Bidders turning out
URBAN BANK: Gov't wants criminal charges filed vs. execs
URBAN BANK: SEC has rehab plan for review
VICTORIAS MILLING CO.: Creditor favors amended rehab plan


* S I N G A P O R E *

ASIA PACIFIC BREWERIES:  Slashing Hainan operations
PANPAC MEDIA.COM: Continues bleeding red ink


* T H A I L A N D *

SIAM CITY BANK: Gov't may limite sale for Thais only
SIAM COMMERCIAL BANK: Sheds pulp stake in reform
SUN TECH GROUP: Posts 3rd quarter loss
THAI PETROCHEM.INDUS.: Wants subsidiaries in plan


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

EMAIL: ASIC asks for disclosure of its break-up plans
-----------------------------------------------------
The Australian Securities and Investments Commission has
asked Email Ltd to disclose any break-up plans it is
considering as part of its defence against Smorgon Steel's
$780 million takeover bid.

ASIC wrote to Email's advisers, UBS Warburg, last week
seeking details of any planned break-up of the group's four
divisions appliances, metals, metering and a security
products joint venture.

It is believed Email recently began preparing information
memoranda for possible asset sales, including the metals
business, which is also coveted by BHP, which snapped up a
14 per cent stake in Email in a sharemarket raid last week.

Email has told ASIC it has not made any decisions about a
break-up and regarded the inquiry as a "fishing
expedition."  The unusual move by ASIC comes as the
corporate regulator has begun forcing companies to reveal
more information under the continous disclosure
requirements of the Australian Stock Exchange listing
rules.

One of ASIC's concerns is that companies facing takeover
bids might adopt new business strategies to ward off
raiders without fully disclosing the long-term implications
of the moves and their effects on shareholders. Email and
UBS Warburg are believed to have investigated selling the
appliances arm to Electrolux and selling the meters
business via a trade sale and the securities products
business to its joint venture partner.

Such a break-up would likelyyielded as much as $3.50 a
share compared with Smorgon Steel's $2.89 a share offer.
Email managing director Mr Ralph Waters confirmed to The
Australian Financial Review yesterday that he had been
"getting some difficulties from authorities asking me to
disclose those plans." I have responded by saying that I
have never said that we had break-up plans.
"I have never said any more than to know that [break-up
valuation] would be a good check and balance to an
inadequate takeover offer," he said.

In his response to ASIC, Mr Waters is also understood to
have said that Email had not broken any continuous
disclosure requirements.  Under the Corporations Law, a
company can obtain an exemption from the continous
disclosure requirements if the details are incomplete and
deemed commercially sensitive.  Email's takeover response
statement, expected to be released this week, could
disclose more details about its future strategy.

Last week, the Australian Competition and Consumer
Commission quizzed BHP about its plans for the shares it
bought in Email, costing $125 million.  The acrimonious bid
has already been before the new Takeovers Panel, and the
conduct of Smorgon Steel's advisers Macquarie Bank came
into question when it was revealed it had prepared an
Email-sponsored valuation last year. The bank has declined
to publicly release the valuation despite Email's request
to do so.

One reason the fight for Email is attracting close
regulatory scrutiny is that Smorgon Steel, BHP and Email
dominate the Australian steel distribution market. Mr
Waters confirmed that Email approached BHP in February
about buying BHP's non-core steel assets and its Tubemakers
distribution business in particular in a deal worth
estimated to be worth more than $1 billion.

"But we never put in a formal offer," he said.
The Email discussions are understood to have fallen through
because BHP stuck to a valuation of its demerged business
of about $2.3 billion. (Australian Financial Review  13-
Jun-2000)

EMAIL: No break-up plans
------------------------
The board of takeover target, Email, says it has no plans
to break up or liquidate the metals and whitegoods company.

However, the directors say they have considered
possibilities including asset sales, since its larger
rival, Smorgon, launched a takeover offer in April. A
newspaper report today claimed the Australian Securities
and Investments Commission has asked Email to disclose any
break-up plans it is considering, to defend itself against
Smorgon's bid.

The Stock Exchange has since queried Email's intentions,
prompting Email to respond in a company announcement.
Another regulator, the Australian Competition and Consumer
Commission, quizzed BHP over its purchase of 14 per cent of
Email stock last year.  (ABC News Online  13-Jun-2000)


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

GOLDEN WOOD LTD: Facing winding up petition
-------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for June 28 on the petition of
Cheung Kwok Leung for the winding up of Golden Wood
Limited. A notice of legal appearance must be filed on or
before June 27.

GUANGDONG INT'L TRUST: Liquidators to sell real estate arm
----------------------------------------------------------
Liquidators of the bankrupt Guangdong International Trust
and Investment Corp (Gitic) will sell its property firm
Guangxin Yuexi Real Estate Development.

It has 27 employees and operates a 28-kilometre expressway
near Yunfu City. It also has some vacant land in Yunfu
City. Official media have said Gitic has 240 domestic and
foreign creditors from Hong Kong, Macau, the United States,
Japan, Thailand and Australia.  (South China Morning Post  
13-Jun-2000)

HONG TAI PLASTIC MATERIAL LTD: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for July 26 on the petition of
Cheung Kwong Chung for the winding up of Hong Tai Plastic
Material Limited. A notice of legal appearance must be
filed on or before July 25.

S. MEGGA INT'L HLDGS.LTD.: Reports on debt rehab to HKSE
--------------------------------------------------------
The board of directors of S. Megga International Holdings
Limited, through Leung Ho Man, Paul, Chairman and Managing
Director, have reported on the company's debt restructuring
to the Hong Kong Stock Exchange.

Reference is made to the announcement dated 9th May, 2000
and 27th March, 2000 in relation to the debt restructuring
proposal and the acquisition of the 40% interest in Act
Power Enterprises Limited (the "APE Acquisition"). Terms
used in this announcement, unless defined herein, shall
have the same meanings in the announcement dated 9th May,
2000.

It is expected that a circular (the "Circular") containing
details of the debt restructuring and the APE Acquisition,
a letter from an independent board committee on the Debt
Restructuring, the advice from an independent financial
adviser on the Debt Restructuring and the notice of a
special general meeting will be despatched to shareholders
on 14th June, 2000.

A special general meeting will be held at 9:00 a.m. on 7th
July, 2000 at Sheung Shui and Fanling Room, 30th Floor,
Panda Hotel, 3 Tsuen Wah Street, Tsuen Wan, Kowloon, Hong
Kong at which resolutions will be proposed to approve the
Debt Restructuring and the APE Acquisition. It is expected
that a meeting of Noteholders will be held on or about 12th
July, 2000 in Switzerland. A notice of Noteholders' meeting
will be published in Switzerland and sent through Euroclear
and Clearstream.

It is mentioned in the Circular that there has been
discussion in relation to the possible issuance of a
convertible note by the Company to Mr. Paul Leung. The
terms of the convertible note is subject to negotiation and
the issuance may or may not proceed. Mr. Paul Leung is the
Chairman and Managing Director of the Company. The issuance
of the convertible note to Mr. Paul Leung, if materialized,
will constitute a connected transaction. The Company will
comply in full with the relevant requirements of the
Listing Rules. An announcement will be issued if a legally
binding agreement is entered into by the Company.

The Debt Restructuring itself does not provide new working
capital to the Group's operation. The Group intends to
obtain new working capital through new debt financing, new
equity capital or improve trade terms with suppliers and
customers. The Directors are of the view that completion of
the Debt Restructuring will enhance the prospects of the
Group gaining either new financing, new capital and/or
improving trade terms with suppliers and customers due to
the substantial improvement in the Group's financial
position post Debt Restructuring. However, there is no
assurance that such financing can be obtained.

Please note that the proposed Debt Restructuring is
conditional and is subject to approval/contract with the
Financial Creditors. Accordingly, the Debt Restructuring
may or may not proceed. Shareholders and investors should
exercise caution when dealing in the shares of the Company.

It is expected that the Modified Debt Restructuring
Agreement will be signed prior to 15th July, 2000. An
announcement will be made upon signing. (Hong Kong Stock
Exchange  13-Jun-2000)


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

PT INDUSTRI TELEKOMUNIKASI: Restructures debt
---------------------------------------------
PT Industri Telekomunikasi Indonesia (INTI) said it hoped
to finish restructuring a debt of US$17 million by the end
of this month.

The state-owned company, producing telecommunication
equipment, said it expected to sign an agreement on 7-year
rollover for its debt with its creditor state-owned bank,
Bank Negara Indonesia.  The debt was undertaken to pay for
the import of telecommunications equipment components from
Japan in 1997.

The components were needed to produce telecommunications
equipment for PT Primacel, but Primacel failed to pay for
the equipment as a result of the crisis. (Asia Pulse  12-
Jun-2000)

PT POLYSINDO EKA PERKASA: Unsecured creditors press case
--------------------------------------------------------
The unsecured creditors of PT Polysindo Ika Perkasa are on
the warpath, fearing that a major restructuring of around
$1.4 billion in debt owed by the company will leave them
out in the cold.

According to people familiar with the situation, banks
representing Polysindo promissory-note holders - roughly
$425 million of the total debt - are seeking to meet
Indonesian President Abdurrahman Wahid in New York next
week to raise their concerns and press him to ensure a fair
restructuring of the company's massive debt.

The case is being closely watched by debt-market traders
and investors. They see the outcome of the restructuring
and that of Polysindo's parent - the diversified Texmaco
group - as another litmus test of the quality of debt
restructuring in Indonesia. It will further how the extent
to which powerful businessmen, such as Texmaco's owner, can
wield substantial influence in the new political landscape.

Polysindo said several times last year that it was on the
verge of reaching a major restructuring deal with its
creditors. It later emerged that it had indeed reached an
agreement in principle with its secured bondholder lenders
and Bank Negara Indonesia, a state-owned bank.

The deal was blown out of the water, however, after then-
state enterprises minister Laksamana Sukardi said in
parliament in November that former President Suharto and
Texmaco had "conspired" to get Bank Negara to give 9.8
trillion rupiah ($1.14 billion) in export credits in late
1997, as the country's currency crisis was spinning out of
control. Bank Negara drew on Bank Indonesia's then-
dwindling foreign exchange reserves to help finance the
loan facility.

After pressure from the International Monetary Fund, Bank
Negara transferred Texmaco's total debt to the Indonesian
Bank Restructuring Agency, which is now leading the
restructuring talks, including the Polysindo rescheduling.
In the move, Texmaco became the agency's largest debtor,
with more than 16 trillion rupiah owed to the agency.

The agency appointed audit firm Deloitte Touche Tohmatsu to
carry out due diligence on the Texmaco group and it plans
to have a preliminary agreement in place of June.

That the agency has given itself so little time to reach a
major restructuring deal has raised fears among unsecured
creditors that it will use the past year's deal as a
blueprint for a new one. They also read a lack of contact
from the agency with the unsecured noteholders as a sign
that they won't have any say in the final restructuring
deal.

"We want holders of unsecured claims on Polysindo to be
recognized as an explicit creditor class in the
restructuring,"said one U.S.-based promissory-note holder,
who spoke on the condition of anonymity."

Polysindo has called a meeting of unsecured creditors for
June 28 in Hong Kong, which the agency plans to attend. The
timing of the meeting has only stoked concerns that the
noteholders will be presented with a fait accompli in the
form of a deal that they cannot influence. (The Asian Wall
Street Journal  12-Jun-2000)


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

DAEWOO MOTOR: Creditors split units for sell-off
SSANGYONG MOTOR: Creditors split units for sell-off
---------------------------------------------------
Daewoo Group creditors have asked bidders to submit
separate offers for Daewoo Motor and Ssangyong Motor,
opening the way for two foreign car-makers to buy into the
South Korean vehicle market.

The decision to split the sell-off plan for the near-
bankrupt Daewoo Motor units comes two weeks before the
deadline for bids, Daewoo Group Restructuring Committee
said.  The separate bid prices will make it easier for
creditors to divide the proceeds from the sale of Korea's
second-biggest car-maker, said a committee executive.

The change "mainly stems from creditors' efforts to
motivate bidders to make a higher bid," said Sohn Jong-won,
a vehicle industry analyst at Good Morning Securities. "I
can't see any implication from that upon which bidders
would benefit from the changed bidding procedures."

The change to request offers for the two units may result
in two foreign car-makers gaining production footholds in
one of Asia's most closed markets.  If allowed to bid for
either of the two units, bidders may end up vying for just
one company, such as DaimlerChrysler bidding for Ssangyong
and General Motors for Daewoo Motor.

The possibility of a shake-out among the five prospective
bidders increased over the weekend, with the Korea Economic
Daily reporting that DaimlerChrysler had agreed to buy 10
per cent in Hyundai Motor, the country's biggest car-maker
and one of the shortlisted bidders.

The German company declined to comment on the report. A
Hyundai spokesman said the two companies were still in
talks although Hyundai would make an announcement soon.
A tie-up between Hyundai and DaimlerChrysler could result
in the companies combining their bids for the Daewoo and
Ssangyong businesses.

Mr Sohn said the two could even emerge as the most likely
winner in the bids.  The other bidders are Ford Motor and
Fiat.  The restructuring committee official said it
remained the creditors' first preference to sell Daewoo's
vehicle business as a single entity. However, if the price
offered for the two main units differs by a wide gap, the
committee would consider selling the units to different
buyers, he said.

Creditors earlier planned to request a single price for
Daewoo Group's vehicle businesses, which include Daewoo
Motor, Daewoo Capital, Daewoo Motor Sales, Daewoo Telecom's
car-parts plant and Ssangyong Motor.  DaimlerChrysler may
well be more interested in Ssangyong than the Daewoo motor
unit.

Ssangyong Motor received much of the technology for its
sport-utility vehicles and minivans from the German firm,
before the company was sold to Daewoo Group in early 1998.
Teaming up with Hyundai to bid for Ssangyong may also help
overcome government opposition to Hyundai getting too big.
The company already controls about 75 per cent of the
domestic car market. (South China Morning Post  13-Jun-
2000)

HYUNDAI MOTORS: Financial affiliates to separate
------------------------------------------------
Hyundai will separate securities, investment trust, and
asset management companies from the group and turn them
into an independent operation, a high Hyundai source said
on June 2.

The move follows the announced plans of retirement for
founder Chung Ju-yung and his sons from managerial
responsibilities.  The source said that Hyundai decided to
spin off the financial arms since they are suspected of
being unconventional funding conduits for the group's
manufacturing units.

"In order to separate financial arms from the group,
Hyundai Merchant Marine will gradually unload its stake in
Hyundai Securities, while Hyundai Electronics will also get
rid of its stake, currently the largest, in Hyundai
Investment Trust and Securities Co.," he said.

Hyundai has been suspected of exploiting financial
affiliates to bankroll its manufacturing businesses. The
independent financial group will be run by professional
managers not connected to the former parent group. Hyundai
Merchant Marine is expected either to sell its 16.6 percent
stake on the stock market or to let a neutral foundation
take it over.  Hyundai Investment Management Co. has been
negotiatng with an unnamed foreign financial institution in
a stepped-up bid to attract foreign capital and possibly
even turn its management over to a foreign buyer. (Korea
Economic Weekly  12-Jun-2000)

SAEHAN GROUP: Owner to put up 24.7B won to soothe creditors
-----------------------------------------------------------
The de facto owner and vice chairman of the Saehan group
announced on June 1 that he would put up personal wealth
amounting to 24.7 billion won in a bid to put Saehan
Industries Inc., on a 'workout' program.

He also announced he would quit running the group. This
move is considered as part of Lee Jae-kwan's efforts to
show creditors how determined he is in saving the business.
His pledged personal contribution was accompanied by the
group's plan to dispose of assets worth 647.5 billion won.

Creditors summoned on June 2 to discuss the workout program
in which they decided to save Saehan Industries through
debt extension. Earlier on May 27, lenders had approved a
workout for Saehan Media, but rejected the group's
application for a workout program for Saehan Industries.

The June 2 approval announcement came after meeting with
officials of Korea Development Bank (KDB), which holds more
than 20 percent of loans extended to the group, about 330
billion won.  The bank had previously opposed the workout
plan as it was said to have nothing to lose even if the
group is liquidated or under court receivership. The bank
has secured collateral as priority lender so that if the
company defaults on loans, KDB could exercise its rights on
collateralized assets before other creditors.

The bank appeared to change its stance with Lee Jae-kwan's
concessions.  Hanvit Bank, another major creditor, was also
satisfied with Saehan's decision and cooperated with KDB to
pass the workout package in the scheduled second round of
creditors' meetings. In general, agreement must be obtained
from more than 75 percent of creditors to implement the
plan.

The Saehan group has debts totaling 2.1 trillion won,
comprised of 1.9 trillion won owed to banks and another
216.3 billion won in non-guaranteed bonds and commercial
paper. (Korea Economic Weekly  12-Jun-2000)

SAEHAN INDUSTRIES: Enters into debt rescheduling program
--------------------------------------------------------
Creditors have agreed on debt rescheduling for Saehan
Industries Inc., a unit of the heavily leveraged Saehan
group, placing the firm in a 'workout' program on June 2.

The decision followed the June 1 pledge made by the Saehan
group owner that he would relinquish management control and
contribute personal wealth amounting to 24.7 trillion won.
Korea Development Bank, which had rejected the original
restructuring proposal for Saehan Industries, was
said to have agreed in the second-round meeting of
creditors.

For three months starting from August 19, lenders will
abstain from exercising their rights on loan collections
and work on valuation of the cash-strapped group's
financial status.  Principal and interest on loans from
financial institutions, commercial paper, unsecured
corporate bonds and lease claims will be temporary frozen
from payment. For exchangeable bonds, secured corporate
bonds and floating rate notes, only payment of the
principal amounts will be extended.

Creditors will discuss ways on collecting debts after
completing due diligence and sending a group of auditors to
check cash flow.  Saehan has outstanding debts worth 2.155
trillion won, of which 1.94 trillion won is payable to
financial institutions. Korea Development Bank topped the
creditors' list with 323 billion won, followed by Hanvit
Bank with 122 trillion.

A day before the workout plan was approved, the group owner
Lee Jae-kwan announced he would abdicate management control
and contribute his personal wealth worth 24.7 billion won.
Reportedly, the group has been suffering from cash shortage
due to a product oversupply and fierce competition in the
polyester industry. (Korea Economic Weekly  12-Jun-2000)

SAMSUNG MOTORS: Renault pledging capital, support
-------------------------------------------------
The chairman of French auto giant Renault pledged here
Tuesday a speedy revival for South Korean automaker Samsung
Motors and to return the company to profitability in 2004.

Louis Schweitzer, making his first visit to the Samsung
plant in the southern city of Pusan, said the capacity of
the factory could eventually reach 500,000 units a year,
half of which would be for export. He also said Renault
planned to create more jobs and introduce a second model
to the Samsung line.

"Welcome Mr. Schweitzer to the Pusan plant," read a large
banner displayed at the entrance to the factory.

While Renault's takeover of Samsung met with opposition
from many South Koreans, it was generally welcomed in Pusan
because of the pledge to keep jobs in a city with high
unemployment.  French and South Korean flags lined the road
to the ultra-modern plant, which includes housing for 1,200
workers, a shopping mall, a movie theater and a bowling
alley.

"Our entry into the Korean market is very significant for
us," Schweitzer said.  "Renault, which did not have an
historic presence in Asia, has managed to forge close ties
in less than two years with the region's two main markets,
Japan and South Korea," he added.

Renault acquired insolvent Samsung Motors in April and is
the first foreign firm to acquire an auto factory in South
Korea, Asia's second largest car market but one that is
extremely closed.  Samsung Motors was launched in early
1998 at the height of the Asian financial crisis and was
placed in court receivership last July with 4.3 trillion
won (3.9 billion dollars) in debt.

Renault last year secured a controlling 36.8 percent stake
in Japan's Nissan Motor Co. Ltd. which has helped Samsung
Motors build the high-end SM5 car model, which is derived
from the Japanese maker's Maxima.  Schweitzer said his
priorities would be to hire more workers, "notably in the
commercial sector," and to increase output from the current
2,000 units a month to 5,000 by the end of the year.

Samsung Motors, which presently employs some 2,000 workers,
may hire an additional 1,000 in the short-term, George
Douin, deputy director general for international
operations, told reporters.  The Renault chairman said
another priority would be to introduce a second model "as
soon as possible."

Douin said the new car would be based on an existing
Renault or Nissan design and should be on the market by the
end of 2002.  Schweitzer reiterated that Renault planned to
invest some 300 million dollars over four years, boosting
capacity to 150,000 units a year by 2003-2004 and 240,000
cars a year by 2005.

"Samsung should announce a profit in 2004," he said.

If these goals are reached, "production capacity for
Samsung Motors could be doubled, to 500,000 cars a year,"
he said, with about half of output aimed at countries such
as Thailand and the Philippines.  Douin said the immediate
priority would be to strengthen Samsung's presence in South
Korea and exports would not begin until 2003.

Relying on its Japanese partner, the French company also
hopes to increase sales in Japan to 30,000, 10 times more
than today.  Schweitzer expressed confidence that the South
Korean auto market and economy were on the road to recovery
following the Asian economic crisis, which started in mid-
1997.

"This market should rapidly regain its 1996 levels, which
were 1.2 million cars (a year)," he said.

Sales fell to 570,000 units in 1998 but rose to 911,000
last year.  The two largest manufacturers in South Korea
are Hyundai, which has 66 percent of the market, and
Sanggyong with 33 percent. Samsung accounted for only
one percent last year with sales of 6,362 cars.  (Agence
France Presse  13-Jun-2000)


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

FIRST DOMINION PRIME HLDGS.: Restructuring debts
------------------------------------------------
First Dominion Prime Holdings, Inc., the largest
manufacturer and exporter of canned tuna in the country and
the second biggest Asia, is restructuring some two billion
Philippine pesos (PhP) (US$47 million at PhP42.521:US$1) in
debts to more than 10 creditors banks, BusinessWorld
learned.

Sources said the company's loans, which are mostly without
collateral, have been classified past due by some creditor
banks. Like other companies hit by the 1997 regional
financial crisis, sources said First Dominion's problems
began when the peso sharply depreciated against the dollar.

"They have stopped paying principal and interest... Their
problems may have started with their dollar loans. When the
peso depreciated, debt servicing increased significantly,"
a source from one of the creditor banks said. "They are
trying to restructure and invite a new investor. At
present, First Dominion is operating below capacity partly
because they lack working capital," the source added.

BusinessWorld tried to reach First Dominion chief operating
officer Romulo P. Ramirez, but he is reportedly out of the
country. First Dominion is majority-owned by the Dee
family. Other stockholders include the Government of
Singapore and the Philippine Opportunities Fund, a mutual
fund based in the United States.  (Business World  13-Jun-
2000)

METRO PACIFIC CORP.: May incur losses in next two years
-------------------------------------------------------
Metro Pacific Corp. (MPC), the local subsidiary of Hong
Kong conglomerate First Pacific, could incur losses in the
next two years if it fails to sell a P5-billion land in Ft.
Bonifacio, a former military camp being converted into a
central business district, an analyst from US-based
investment bank said in a report.

Alfred Dy, vice president of Merill Lynch in Manila, said
MPC is relying heavily on asset sales of its core business,
Ft. Bonifacio Development Corp., to boost its revenues.

"In the past, MPC has stated that gains associated with
asset sales could be in excess of P5 billion which they
intend to amortize to smoothen out earnings. Needless to
say, devoid of asset sales, MPC could post losses in 2001
to 2002, especially should FBDC be unable to sell
additional land in Ft. Bonifacio," he said.

Unable to dispose of land in the former military camp, he
said FBDC could post a net loss of P412 million next year
instead of the projected net earnings of P2.03 billion.
This year, he said MPC is in danger of posting a net loss
of P281 million based on the earnings model adopted by
Merill Lynch.

The still sluggish property sector, as indicated by the
double-digit vacancy rates for both residential and office
condominiums in the Makati and Ortigas business districts,
makes it doubly difficult for FBDC to sell its
landholdings.

With the bearish prospects in the property market, he said
the firm might resort to borrowings or issuing shares to
finance maturing debts and capital expenditure. He said
P6.325 billion debts are maturing in the next 12 months.

Should Metro Pacific sell its eight percent stake in
Philippine Long Distance Co. it can realize some P2
billion. However, this has yet to take place in the second
quarter of next year with First Pacific or NTT of Japan as
the likely buyer.

MPC's debts include P1.2 billion from Urban Bank: a P1.95-
billion remaining balance on its long-term commercial paper
issued in 1996 and maturing in March 2001; and, P3.175
billion remaining balance on its convertible bonds issued
in 1996 which has a put option in April 2001.  Along with
its maturing debts, the firm needs cash to finance its
capital expenditure estimated at P2 billion to P3 billion a
year in 2000 to 2001.  (Philippine Star  13-Jun-2000)

URBAN BANK: Bidders turning out
-------------------------------
Asia United Bank and Bank of Commerce have submitted their
proposals to acquire Urban Bank Inc, the Philippine Deposit
Insurance Corp said.

PDIC president Norberto Nazareno said he is also expecting
one other bank to submit its bid before the 6 pm deadline
today.  Nazareno said Asia United Bank is interested in
acquiring only Urban Bank while Bank of Commerce is keen on
buying the bank as well as its investment house.  Nazareno
said the bids will be evaluated, and that recommendations
will be submitted to the central bank's policy-making
Monetary Board by next week.  Earlier, Nazareno said there
were six banks interested in buying Urban Bank.  (AFX News
Limited  13-Jun-2000)

URBAN BANK: SEC has rehab plan for review
-----------------------------------------
The Bank of Commerce (BOC) and majority shareholders of
Urban Bank Inc. yesterday jointly submitted to the
Securities and Exchange Commission (SEC) their proposed
rehabilitation plan for the bank and its investment house
subsidiary Urbancorp Investments Inc. which entails the
merger of the three corporations, the infusion of new
capital into BOC, and the divestment of non-performing
assets.

BOC and shareholders representing more than two-thirds of
the outstanding capital of Urban Bank and Urbancorp last
month signed an agreement whereby BOC, Urban Bank and
Urbancorp shall be merged with the former as the surviving
entity. BOC said the proposed merger is expected to help
the UrbanBank Group recover from their financial quagmire
brought about by the sudden pre-termination of investments
of jittery investors and a failed diversification into
property development.

Under the rehabilitation plan, the Urban Bank Group's
common capital stock, capital surplus and loan loss
reserves shall be offset against non-performing loans,
other assets and certain expenses not yet recognized in the
books of Urban Bank in the amount of P2.35 billion. This
will effectively write off the value of existing common
shares.

In exchange, the common shareholders of Urban Bank shall
acquire an interest in an escrow account to be established
by BOC out of the proceeds of any collection or sale of
non-performing loans. They are also entitled to a share of
the gain on the sale of or appreciation in the value of the
property holdings.

BOC intends to pursue every opportunity to divest the
selected real estate holdings of the Urban Bank Group at
the earliest possible time and to maximize the cash flows
from such holdings. These properties consist of the Urban
Bank Plaza, the bank's headquarters; Capital Place, a
commercial lot in Fort Bonifacio; a commercial property
along Roxas Boulevard; and a 33-hectare property adjacent
to the Tagaytay Highlands resort.  (Manila Times  14-Jun-
2000)

URBAN BANK: Gov't wants criminal charges filed vs. execs   
--------------------------------------------------------
Finance Secretary Jose T. Pardo has reportedly ordered the
Land Bank of the Philippines to file criminal charges
against top executive of the Urban Banking Corp. including
its founding chairman Arsenion Bartolome III and president
Teodoro Borlongan.

Sources told THE MANILA TIMES yesterday that Pardo wants
the charges filed as soon as possible to signal that the
government is serious in plugging loopholes in the
corporate sector which adversely affect investors'
confidence on the economy.

"There were violations made by Urban Bank that could
necessitate a legal action. Secretary Pardo definitely
wants this done since he wants to address the defects of
the (entire financial) system," a source said.

Pardo concurrently chairs the LandBank board.  LandBank
president Florido Casuela, in an interview, said that they
were not yet decided on whether to file a case or not
against Urban Bank officials for alleged misrepresentation.  
The government financial institution (GFI) extended a P600-
million loan to Urban Bank a day before it declared a
holiday.

"We are still studying this," he said without elaborating.

Casuela was set to meet with Pardo yesterday at the
Department of Finance to discuss among others, the Urban
Bank issue. Bartolome and Borlongan allegedly did not
inform LandBank that they would be suspending operations on
April 26 when they were applying for the loan that was
granted though the inter-bank loan market.

Urban Bank was shut down by the policy-making Monetary
Board of the Bangko Sentral ng Pilipinas on the same day
its bank holiday took effect.  While legal action against
Bartolome and his team remains an option for LandBank, the
GFI could also just "ride along" on possible criminal and
civil raps against the latter presently finalized by the
BSP, the Securities and Exchange Commission, the Department
of Justice, and some big Urban Bank depositors.
To recall, BSP Governor Rafael B. Buenaventura confirmed
that the top brass of urban Bank breached certain banking
rules, one of which was the 15 percent ceiling on loans
granted to Dosri (bank directors, officials, stockholders,
and related interests).  The 15-percent cap prohibits banks
from extending Dosri loans beyond 15 percent of its total
loan portfolio or capital funds. Bartolome and Borlongan
allegedly used the borrowings to aid Urban Bank's cash
strapped investment house-the Urbancorp Investment Inc.

"If LandBank will not be able to file a case, then all it
could do is wait for the time Urban Bank has been fully
liquidated money from which, would be used to service the
creditors, the investors, the depositors and taxes of Urban
Bank, a source told THE MANILA TIMES.

Urban Bank is still awaiting a "white knight" that could
rehabilitate it. It is set to be bid out this month to
interested investors.  Buenaventura said that one of the
prospective six investors had backed out. He did not
identify which one of the six that include the Keppel Bank
of Singapore, the Banque Nationale de Paris, the Rizal
Commercial Banking Corp., the Bank of Commerce and Allied
Banking Corp.  (Manila Times  14-Jun-2000)

VICTORIAS MILLING CO.: Creditor favors amended rehab plan
---------------------------------------------------------
Equitable PCI Bank said it has no objection to the
alternative rehabilitation plan proposed by the management
committee of Victorias Milling Co.

In a statement to the Securities and Exchange Commission,
Equitable PCI Bank, one of Victorias Milling's creditors,
however said a professional management team acceptable to
secured creditors must be in place within 120 days from the
SEC's approval of the alternative rehabilitation plan.

The bank said an infusion of 300 mln in cash by the secured
creditors or by the acceptable joint venture partner
solicited by these secured creditors must be accomplished
also within 120 days from the SEC's approval.  If the two
conditions are not met, Equitable PCIBank said Victorias
Milling should be dissolved since any further
rehabilitation efforts would only prove futile.  (AFX News
Limited  13-Jun-2000)


=================
S I N G A P O R E
=================

ASIA PACIFIC BREWERIES:  Slashing Hainan operations        
---------------------------------------------------           
Singapore's Asia Pacific Breweries yesterday said losses at
its Hainan operations in China will be slashed to $10
million this year, from $30 million in 1999.
"I would not be surprised if our losses drop from $30
million to $10 million for the full year," chief executive
officer Koh Poh Tiong said at a post-results briefing
yesterday.  Mr Koh said he expects the group's Hainan
operations to break even within two to three years. "It's a
star performer," he said. "It has a good future."

The group's China operations suffered an interim loss of
$14.5 million, with Hainan accounting for the bulk of it
($9.5 million).  APB will divest its 40 per cent stake in
Tee Yih Jia (Fujian) Brewery in Fuzhou and is "quietly
optimistic" about its Shanghai operations, Mr Koh said.
"The strategy is to shrink and when the time is right to
grow again," he said of the group's strategy for China.

For the six months ended March, the listed breweries
division of Fraser & Neave recorded a 16.6 per cent rise in
net profit to $33.3 million, on a turnover of $676 million.  
Mr Koh was upbeat on the outlook for the second half of the
year, bringing the group's full-year profit forecast to
"well ahead that of last year".

Sales in Singapore, New Zealand and Papua New Guinea shrank
slightly in the first half due mainly to increased gambling
activity, he said.  Turnover in Singapore, its second
largest market after New Zealand, declined to $181.2
million from $190.9 million. Profit before tax fell to
$33.1 million from $41 million for the first half of the
year.

Mr Koh said sales in Singapore and Malaysia have stabilised
and the group may increase its stakes in Papua New Guinea
and New Zealand. People rather spend their money on
gambling than drinking, he said.  On the stock market
yesterday, APB shares rose four cents to $3.94.  (Business
Times  13-Jun-2000)

PANPAC MEDIA.COM: Continues bleeding red ink               
--------------------------------------------             
Sesdaq-listed Panpac Media.com has continued to bleed red
ink, with a full-year net loss of $9.8 million.

This was over three times what it lost in the previous year
and was due mostly to its Internet ventures --
Asiastockwatch.com which offers financial information and
the travel and leisure portal ZingAsia.com.  Turnover for
the year ended March 31 was a marginal $100,000 lower at
$14.5 million.

The bottom-line loss increased to $11.1 million with loss-
making investments in associated companies.  This would in
fact have been been higher if not for a $7.1 million profit
on the sale of 80 per cent of its stake in Nasdaq-listed
Chinadotcom.  The net loss was caused by a change in
accounting policy whereby costs in developing a portal are
treated as expenses rather than capitalised.

The two portals, launched around December last year,
incurred development costs of around $11 million, up from
$1.3 million in the previous year.  Former SingNet chief
Paul Chong, just two days on board as executive director of
ZingAsia, will spearhead its expansion.

Revenue, including advertising and content syndication,
from these portals was only about $762,000.  Vice-chairman
of Panpac, Mr Chong Huai Seng, expects that the portals
will continue to have a ""burn rate'', or operational
expenses, of $1 million per month. He added that the
Internet ventures would continue to be loss-making in the
current year.

Panpac as a whole is expected to be cash-flow positive only
by the second half of the year to March 31, 2002.  Panpac's
traditional publishing business saw its profit before tax
rise 34 per cent to $1.3 million. However, turnover fell
from $14.5 million to $12.9 million.  (Straits Times  13-
Jun-2000)


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

SIAM CITY BANK: Gov't may limite sale for Thais only
----------------------------------------------------
Thailand may decide to bypass foreigners and sell state-
owned lender Siam City Bank plc to local Thais, because the
central bank has received bids from several groups of local
investors, an official said yesterday.

The sale to Thais would be the first time that foreigners
haven't bought any of the state-owned or nationalised
commercial banks that have been auctioned since the
1997/1998 financial crisis.  The central bank now aims to
sell Siam City Bank to private investors by the end of
July, instead of during June, said Bank of Thailand
assistant governor Chaktip Nitibhon.

The bank last week rejected a bid by US-based Newbridge
Capital Ltd to buy the lender as too low.  The sale of
state-owned lenders is part of a government plan to rebuild
the financial sector, where about two-fifths of total loans
are delinquent.  The government has shut more than two-
thirds of the nation's finance companies and has seized
half of its commercial banks over the past three years.

The government has been selling stakes in state-owned banks
and companies to foreign investors because it needs money
to build up its foreign reserves. Thailand depleted its
foreign currency reserves in 1997 after a failed defence of
the baht.  

Siam City Bank was seized by the government in 1998 because
it was insolvent. It lost 5.8 billion baht (S$255.9
million) in 1999 compared with 42.5 billion baht in the
previous year.  The bank has about 200 billion baht in
delinquent debt, or 90 per cent of its total loans.  (The
Nation  13-Jun-2000)

SIAM COMMERCIAL BANK: Sheds pulp stake in reform
------------------------------------------------
Siam Commercial Bank (SCB) has divested its 6.56-per-cent
stake in Siam Pulp and Paper Plc (SPP) to Siam Cement Plc
(SCC) as part of its reform plan to move away from non-
financial business.

The country's fourth largest bank has fetched Bt973.73
million from the sale of 10.2 million shares in SPP,
according to the filing with the Stock Exchange of
Thailand.  As a result, the bank's share in the paper firm
is zero while SCC's stake has been raised to 80.4 per cent.

To comply with the stock market's regulations, the
country's leading conglomerate, SCC, has to make a tender
for 30.6 million shares, or 19.6 per cent of SPP, at Bt95
each, slightly lower than SPP's closing price yesterday of
Bt96. The tender is expected to take place on Thursday.
SCB, long known as a bank with a large number of subsidiary
and affiliate companies, announced its policy after
succeeding in its Bt60-billion global fund-raising drive in
early 1998 to downsize and refocus its efforts with an
emphasis on its core business, bank lending.

Following the plan's implementation, bank subsidiaries from
various sectors - real estate, industry, commerce,
services, consulting, medical services, warehousing,
energy, communications, leasing, finance and banking - have
been selectively wiped from the list since late 1998.

Earlier, bank president Jada Wattanasiritham said her bank
planned to lower investments in subsidiary and affiliated
companies from about 100 to fewer than 20 by the end of the
month.  Under the restructuring plan, the bank's
investments have been put into three classes. First are
investments in service industries that support its banking
business, including legal and appraisal firms and research
companies.

This group will be limited to six or seven firms, Jada
said.  Second are companies conducting finance-related
business which the bank is forbidden to do, such as
leasing, factoring securities-brokerage houses and
investment management.

Subsidiaries and affiliates in this group will be merged
into five or six companies. This group includes SCB Asset
Management Co Ltd, one of the country's top three fund
companies, she said.  The last category consists of non-
core businesses in which the bank has no expertise, such as
media and construction, she said.  (The Nation  13-Jun-
2000)

SUN TECH GROUP: Posts 3rd quarter loss
-------------------------------------
Sun Tech Group reported third-quarter (March 31) net losses
of 65m bt compared with net losses of 517m bt for the same
period a year earlier.  (Bangkok Post  13-Jun-2000)

THAI PETROCHEM.INDUS.: Wants subsidiaries in plan
-------------------------------------------------
Thai Petrochemical Industry Plc (TPI) will propose that its
five subsidiaries be included in the company's debt-
restructuring process, chief executive Prachai
Leophairatana said yesterday.

Effective Planner Ltd, which was appointed by TPI's
creditors to draft and implement a rehabilitation plan,
will be asked to include Thai Polyol, Thai Petrochemical
Industry (Cayman), Rayong Tank Terminal, Thai Polyurethane
Industry, and TPI Aromatics Plc in the plan, he said.

The plan currently being drafted already includes
subsidiaries Thai ABS and TPI Oil.  Prachai said the
inclusion of the other subsidiaries will enable TPI to
attract new capital more easily because it will be a more
integrated petrochemical player.

"By doing it this way, late this year or early next year,
TPI would be able to conduct a recapitalisation. After
that, the firm would be able to seek a court order enabling
it to get out of the rehabilitation process. And from 2003
to 2004, the company could repay its debts and then become
the strongest petrochemical company in the country,"
Prachai said.

TPI is hoping to attract US$1 bil-lion (Bt39 billion) in
new capital through its restructuring and recapitalisation.
According to the debt restructuring proposal, TPI's debts
would be cut from $3.5 billion to $1.5 billion through
capital increases, debt buy-backs, and debt-to-equity
plans.

Because of the restructuring and an uplift in the
petrochemical market, Prachai is confident that TPI can
attract fresh capital quickly. The company's cash flow
before interest, depreciation and amortisation would be
four times higher than its interest expenses, he said.
Prachai said TPI is projecting total revenues of Bt80
billion this year and net profit of $280 million before
interest and tax expenses.

TPI's daily oil products output will also be raised to
250,000 barrels from 60,000 barrels when the company
completes the Bt1 billion expansion of its condensate
splitter plant, he said.  Effective Planner is expected to
complete TPI's rehabilitation plan and submit it to the
court by July 28.  (The Nation  13-Jun-2000)


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

Troubled Company Reporter -- Asia Pacific is a daily
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Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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