TCRAP_Public/000616.MBX      T R O U B L E D   C O M P A N Y   R E P O R T E R

                            A S I A   P A C I F I C

             Friday, June 16, 2000, Vol. 3, No. 117

                                    Headlines


* A U S T R A L I A *

EDGE GROUP: All over but shouting
GLOBAL FINANCE: Chief charged with fraud
GOODMAN FIELDER LTD: Edible oil,milling plants to rehab
SOUTHERN STAR GROUP: Posting losses during restructuring


* C H I N A  &  H O N G  K O N G *

EPOXY POWDER COATINGS CO.LTD.: Facing winding up petition
FIRST EXPRESSWAYS: Winding up petition reported to HKSE
MONKEY KING GROUP: Owes subsidiary 1.13B yuan
SAIC MULTIPLE TRADING CO.: To give company up to parent
WAI KEE HOLDINGS: Sells stake to NWD to reduce debt
ZHENGZHOU BAIWEN CO.: Pursuing asset restructuring


* I N D O N E S I A *

INDUSTRI PESAWAT TERBANG NUSANTARA: Insolvency threatens
PT DOK PERKAPALAN: Court rejects bankruptcy case
PT SUMI ASIH: Supreme Court rejects IBRA appeal


* J A P A N *

FUJITA CORP.: Posts third year of annual loss
NACHI FUJIKOSHI CORP.: Forecasts 3.9B yen net loss
NIIGATA CHUO BANK: Posts annual loss of 186B Yen
SKYMARK AIRLINES: Posts 6-month net loss
TOMEN CORP.: Stock continues to flounder


* K O R E A *

DAEWOO GROUP: KAMCO to buy 4T won in CPs at 20% discount


* M A L A Y S I A *

MAY PLASTICS INDUSTRIES: Expects year-end rehab completion


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

ALL ASIA CAPITAL & TRUST: Facing liquidity squeeze
CORPORATE INVEST.PHILIPPINES: Facing liquidity squeeze
EAST ASIA CAPITAL CORP.: Facing liquidity squeeze
PHILIPPINE NAT.BANK: L.Tan,RCBC drop bid for gov't stake
PHILIPPINE NAT.BANK: Tan willing to sell shares at a loss
VICTORIAS MILLING CO.: In talks with European investor


* T H A I L A N D *

ANGEL AIR: At risk of losing rights to routes
KRUNG THAI BANK: Restructures Bt30B of bad loans in May
SUBMICRON TECHNOLOGY: Assets go into receivership


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

EDGE GROUP: All over but shouting
---------------------------------
The Edge Group, the failed personal computer empire of
Chinese-Australian entrepreneur Mr Johnson Wang, appears to
be headed for liquidation, following meetings between
creditors and the remaining 40-odd staff yesterday.

Little hope is held for Edge Holdings and its nine-related
companies, which ceased trading last week with an estimated
debt of $30 million to $40 million.  A voluntary
administrator, Armstrong Wily & Co, yesterday told
creditors the most difficult task would be unravelling a
maze of inter-company loans between the Edge Group and its
overseas subsidiaries.  Mr Wang, who also founded ailing
Internet service provider eisa, recently lost control of
Edge's US subsidiaries, which also collapsed under large
debts.

"We will report to creditors in two weeks for a meeting on
or about July 5, which will detail the preliminary
investigation," said Armstrong partner Mr Alan Topp after
the meeting. Edge's creditors include eisa and Microsoft.

It was likely that the assets of the Edge companies could
be liquidated, unless the two directors - Mr Johnson and Ms
Delphia Lai - made a late offer to creditors, Mr Topp said.
Mr Chris Wykes, of Lawler & Partners, a receiver acting for
creditor Cash Resources, said yesterday: "My understanding
is it [the Edge group] will be liquidated.

"The company's not trading, Johnson Wang is apparently
overseas and I would be surprised if anything other than a
winding up happens."

Edge experienced a dramatic loss of sales over its final
months. Sales for the 1998-99 financial year were $250
million, compared with just $50 million for the nine months
to March 2000, Mr Wykes said.  Edge Group would have
continued to suffer big losses, he said.

"It is quite unusual to have such a high level of sales and
see them reduce so significantly during the current
financial year, Mr Wykes said. "I suppose if you knew what
the reason for that was, you'd know the reason for the
failing of the company." (Sydney Morning Herald  15-Jun-
2000)

GLOBAL FINANCE: Chief charged with fraud
----------------------------------------
The head of the Perth mortgage broking firm Global Finance
has been charged with fraud.

John Margaria has been charged with 21 counts of fraud and
one count of attempted fraud.  The charges relate to a
multi-million-dollar loan for a development in Wellington
Street, East Perth.  Administrators were appointed to
Global Finance in February and the company went into
liquidation in April.  Bail for Margaria has been set at
$250,000. (ABC News Online  15-Jun-2000)

GOODMAN FIELDER LTD: Edible oil,milling plants to rehab
-------------------------------------------------------
Goodman Fielder Ltd will close one of its edible oil plants
in Victoria as part of a $50 million restructuring of its
edible oil manufacturing operations.

Goodman is also expected to announce this week the results
of a three-month review of its milling assets, which is
likely to lead to the closure of several of its milling
sites in New Zealand and Australia.  It is understood the
announcement, which could come as early as today, will
address Goodman's milling capacity in New Zealand - where
it has five sites including an oat mill - while the
Australian review has yet to be completed.

The restructuring of the edible oils and milling operations
is aimed at making Goodman - Australia's largest food group
- the lowest cost producer in both industries, freeing up
capital for investment in growth markets. Goodman has
identified annual cost savings of $10 million after three
years from the restructuring of its edible oil assets,
while the potential savings from milling rationalisation
have not yet been quantified.

Goodman plans to consolidate its Victorian edible oil
operations into the one expanded site at West Footscray, in
Melbourne's west, after closing a retail packaging plant in
Port Melbourne.  The West Footscray plant, which currently
produces edible oils for the industrial and food service
markets, will be expanded to include the production and
packaging of bottled edible oils for the retail market.

The 64 staff at Port Melbourne will be offered the
opportunity to transfer to West Footscray or to apply for
other positions within the Goodman group.  When Goodman
commenced the edible oils restructuring earlier this year,
it originally intended to retain both the Victorian plants
and its Queensland plant, close half its Sydney production
plant and commence construction of a new factory on the NSW
Central Coast for the production of fast-growing products
such as table sauces and cook-in sauces.

However, a Goodman spokesperson said yesterday the company
had decided to close the Port Melbourne plant to further
centralise production and improve efficiency. No figures
for the investment in upgrading the Footscray plant have
been released but Goodman has previously said it expects to
invest $50 million in the restructuring.  Analysts believe
Goodman is likely to announce the closure of at least one
of its four flour milling sites in New Zealand after it
releases details to staff this week.

Goodman has reduced the number of milling stock-keeping
units by around 30 per cent following its merger with
Bunge/Defiance 18 months ago, and has considerable milling
overcapacity in the New Zealand and Australian markets.

However, Goodman is considered unlikely to close all the
mills in New Zealand, as shipment of milled flour over
large distances can be problematic, analysts say.
The milling review has considered issues such as the
location of Goodman's wheat supplies and its major
customers, and whether mills should be more specialised or
produce a range of products.

Goodman is the largest flour miller in New Zealand and
Australia, with respective market shares of 60 per cent and
50 per cent, following the merger with Bunge in December
1998. (Australian Financial Review  15-Jun-2000)

SOUTHERN STAR GROUP: Posting losses during restructuring
--------------------------------------------------------
Southern Star Group, maker of the popular Blue Heelers
television show, has slumped $25.77 million into the red
after taking a heavy hit on restructuring its operations.

The production house had undertaken a restructure of its
balance sheet but said it expected to deliver positive
cashflows and improved profits in the coming year. That was
despite Southern Star yesterday warning there was no sign
of a sustained recovery in the European market for film and
television programs.

The loss for the year to March 31 came after a $41.77
million pre-tax abnormal charge, and compared with a $5.46
million net profit in the previous year.  The profit before
interest, amortisation, tax and abnormals was down 29.9 per
cent to $7.8 million, and sales revenue dipped by 0.9 per
cent to $142.75 million.  A final dividend was axed in the
process, compared with a 3.5-cent unfranked final payout
last year.

Southern Star shares gained two cents to 28 cents despite
the figures.  Southern Star executive chairman Neil
Balnaves attributed the reduced earnings to a two-year
decline in the European market.  He said British,
Australian, Canadian and New Zealand product had been
squeezed out as American studios undertook output deals
with big European broadcasters to buy all their product.

Late last year, Southern Star had believed there were signs
of an improvement. But the downturn, originally expected to
last for 18 to 24 months, was now likely to cover at least
three years.

"It will come back but, to what extent, is hard to predict.
It would be improper to go through another year without
addressing the problems in the balance sheet, that those
assets in the short term won't realise their expected
values," Mr Balnaves said.

He said Southern Star remained committed to Europe, where
it undertook about $20 million in business a year.
Southern Star booked a number of one-off abnormal
writedowns of program production costs which, with one-off
expenses associated with the group's restructuring,
totalled $26.9 million after tax.

"The core businesses of Southern Star, apart from the
European sector, continue to be strong and we expect to
deliver both positive cashflows and improved profits over
the coming year," Mr Balnaves said.  "In addition, the
company is reviewing a number of strategic initiatives to
add value for shareholders over the next 12 months."

Mr Balnaves said the company had gone through a "fairly
dramatic" restructuring, undertaking a number of changes to
lower its cost base and revitalise its entertainment and
program sales operations.  The restructuring measures
included a 27 per cent reduction in management and staffing
levels, a reduction in the ongoing cash investment in
program copyright from Southern Star Entertainment, and a
lowered level of funds invested in net distribution
advances by Southern Star Sales.  (The Age  14-Jun-2000)


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

EPOXY POWDER COATINGS CO.LTD.: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for July 12 on the petition of
Singh Savinder for the winding up of Epoxy Powder Coatings
Company Limited. A notice of legal appearance must be filed
on or before July 11.

FIRST EXPRESSWAYS: Winding up petition reported to HKSE
-------------------------------------------------------
The board of directors, through Li Shiming, Director,
confirm that on 12th June, 2000 the High Court made an
order for the winding up of First Expressways, a wholly-
owned subsidiary of Greater Beijing (which is itself being
petitioned for winding up).

The Company is one of the minority shareholders of and has
invested approximately HK$244 million (representing
approximately 12% of the total consolidated net asset of
the Group as at 31st December, 1999) in Greater Beijing. As
already disclosed in the published financial statements,
the Company has already made provisions of approximately
HK$122 million in 1999 in respect of the Investment.

First Expressways is a wholly-owned subsidiary of Greater
Beijing Region Expressways Limited ("Greater Beijing") and
is holding controlling interests in tolled highway projects
in the People's Republic of China. To the best of the
information and knowledge of the Company, First Expressways
represents approximately 90% of the total audited net asset
value of Greater Beijing and its subsidiaries as at 31st
December, 1998. Greater Beijing is itself being petitioned
for winding up.

Notwithstanding the Winding Up Order, the Company maintains
the normal operation of all its business and activities.
The Company is seeking legal advice on the Winding Up Order
and will, upon obtaining the Legal Advice, review and
assess the possible impacts on the Company accordingly.
(Hong Kong Stock Exchange  15-Jun-2000)

MONKEY KING GROUP: Owes subsidiary 1.13B yuan
---------------------------------------------
Monkey King Co Ltd said parent company Monkey King Group
Ltd's liabilities to the listed firm amounted to 1.13 bln
yuan at end-1999, but the parent company has pledged to
repay some of this amount using assets, cash, shares and
accounts receivable.

An announcement said Monkey King Group had 890 mln yuan in
debts to Monkey King at end-1999 and had yet to repay a 244
mln yuan bank loan guaranteed by Monkey King. At the end of
1999, Monkey King Group's gross assets amounted to 934 mln
yuan.  The announcement added that Monkey King became
involved in 26 economic law cases between April 1998 and
end-1999.

Monkey King won four of the cases, while one case is still
in trial, it said, noting that the cases in which the
company was defeated, as well as the case still undergoing
trial, involve debts owed by Monkey King worth 216 mln
yuan.  Between January 1 and June 12, the company became
involved in a further 10 legal cases involving company
liabilities worth a further 137 mln yuan, it said, adding
that the company has already lost two of the cases.

A report in Shenzhen's Securities Times said Monkey King
Group's stake in Monkey King has been frozen by court
order, adding that the parent company's gross assets are
considerably smaller than its debts.  Monkey King's A-
shares last closed at 5.9 yuan.  (AFX News Limited  15-Jun-
2000)

SAIC MULTIPLE TRADING CO.: To give company up to parent
-------------------------------------------------------
SAIC Multiple Trading Co Ltd said it will return ownership
of Shanghai Qianwei Citrus Co Ltd to SAIC Multiple Trading
Group Co Ltd.

An announcement by SAIC Multiple Trading said it should
have paid 43.7 mln yuan to the parent company after it
received ownership of Qianwei Citrus in 1997.  However,
SAIC Multiple Trading has not yet paid this amount, and
ownership of Qianwei Citrus will now return to the parent
company.

At the time of the transaction, Qianwei Citrus was valued
at 89.2 mln yuan, but Qianwei Citrus has made combined net
losses of 40 mln yuan in the 3 years since the ownership
transfer.  The SAIC Multiple Trading made a net loss of
29.6 mln yuan in 1999 and is expected to make a loss again
this year, it said, adding that the ownership transfer back
to the parent company should reduce SAIC Multiple Trading's
losses this year.  (AFX News Limited  15-Jun-2000)

WAI KEE HOLDINGS: Sells stake to NWD to reduce debt
---------------------------------------------------
Construction company Wai Kee Holdings remains under heavy
financial pressure despite raising nearly HK$90 million by
placing shares to New World Development (NWD), according to
analysts.

Wai Kee announced late on Tuesday it had ended talks to
sell its 49.9 per cent stake in Road King Infrastructure to
Cheung Kong Infrastructure (CKI).  Instead, the Zen family-
controlled company said it planned to sell shares in itself
to NWD through a top-up placement by tomorrow, raising
HK$89.4 million to repay borrowings.

Analysts said the company was still in need of funds as it
had to pay down debts amounting to about HK$350 million
this year.  Analysts said Wai Kee needed to redeem
convertible bonds amounting about HK$200 million issued to
HSBC's direct investment arm. The convertible bonds were to
have been converted into Wai Kee China shares when the
company listed. However, Wai Kee China failed to list last
year, making the parent liable to redeem the bonds by
August.

The company also has to buy back 13 per cent of subsidiary
Zen Pacific from America International Group, which holds a
put option giving it the right to sell the stake to Wai
Kee.  In addition, subsidiary Zen Pacific International may
have to pay compensation to the Housing Authority in
relation to its involvement in a Sha Tin public housing
piling scandal. Wai Kee has estimated it may have to pay
compensation of HK$50 million.

A fund manager who holds shares in Wai Kee group companies
said the parent was still facing financial pressure and
might have to take further steps to reduce its
indebtedness. He believed Wai Kee might still dispose of
its stake in Road King, although the company said it had no
intention to sell in the short term.

Wai Kee will sell 128 million shares to NWD at 70 cents per
share, a 14.8 per cent premium to the last traded price
before they were suspended on Friday. The shares rose two
cents, or 3.3 per cent, to 63 cents after they resumed
trading yesterday.

After the placement, NWD will be the second-largest Wai Kee
shareholder, with 16.54 per cent of enlarged share capital.
The Zen family's interest will be diluted from 53.28 per
cent to 44.47 per cent. Sources said NWD was attracted by
Wai Kee's quality assets, namely Road King Infrastructure.

Analysts said the deal was reasonable for NWD. However, it
remains unclear why Wai Kee changed its mind about selling
its Road King stake to CKI.

"I think this is because they [Wai Kee and CKI] could not
reach an agreement on the price," one fund manager said.

They believed NWD's move had effectively blocked the deal
between Wai Kee and CKI.

"It is in NWD's interest to prevent Wai Kee selling its
best asset to another party at a low price," an analyst
said.

Cheung Kong would not comment on why the talks had
collapsed, while Wai Kee did not return calls seeking
comment.  (South China Morning Post  15-Jun-2000)

ZHENGZHOU BAIWEN CO.: Pursuing asset restructuring
--------------------------------------------------
Zhengzhou Baiwen Co Ltd said the company is seeking
opportunities to carry out asset restructuring, although
there remains a possibility that the firm will
be put into bankruptcy.  The company said it made the
announcement after its A-shares closed limit-up for three
consecutive days. Zhengzhou Baiwen's A-shares last closed
at 6.16 yuan.  (AFX News Limited  15-Jun-2000)


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

INDUSTRI PESAWAT TERBANG NUSANTARA: Insolvency threatens
--------------------------------------------------------
Inadequate working capital threatens the existence of debt
ridden state-owned aircraft maker, Industri Pesawat Terbang
Nusantara (IPTN).

"The problem besetting IPTN is not only the lack of
adequate working capital but also its heavy burden of
debt," the company's acting president Paramajuda
told a House commission in a hearing yesterday.

Paramajuda said IPTN's principal debts totalled US$ 102.58
million, 13.99 million yen and Rp34.5 billion (US$ 4.25
million). Its assets are estimated at Rp3.8 trillion.
He said part of the debt was in the process of restructure.
IPTN hopes part of the debt can be converted into shares.

He added that the company was technically bankrupt but the
government had to save the assets and the workers. IPTN has
around 4,000 workers. He also said the company's sales
target was Rp988 billion this year with profit of Rp3
billion. In 2001 the sales are projected to rise to Rp1.278
trillion and profit, expected to increase to Rp51 billion.
(Asia Pulse  14-Jun-2000)

PT DOK PERKAPALAN: Court rejects bankruptcy case
------------------------------------------------
The Commercial Court has rejected the bankruptcy case
against state-owned shipbuilder PT Dok Perkapalan & Koja
Bahari, filed by ING Bank, Hong Kong Chinese Bank and Cho
Hung Bank, chief proceedings judge I Gusti Nyoman Putera
said.

Putera said the judges rejected the lawsuit as "the basis
for the lawsuit was not clear."  He added that one of the
reasons why the case has been rejected is that a similar
lawsuit "has been filed earlier by certain creditors and
...rejected by the court."

He also said the creditors should also clarify whether the
loans have been approved by the Finance Ministry as a
letter has been issued by former finance minister Bambang
Subianto asking the company not to offer promissory
notes.  ING Bank, Hong Kong Chinese Bank and Cho Hung said
they have matured debts worth 5.4 mln usd plus 9 bln
rupiah, 3.5 mln usd, and 2.3 mln usd respectively,
according to the petition filed by the three banks.

They said the debts originated from promissory notes issued
by the company in 1996, which matured in 1997.  (AFX News
Limited  14-Jun-2000)

PT SUMI ASIH: Supreme Court rejects IBRA appeal
-----------------------------------------------
The Supreme Court said it rejected an appeal by the
Indonesian Bank Restructuring Agency against a Jakarta
Commercial Court ruling that had opposed IBRA's bid to
declare PT Sumi Asih bankrupt.

"IBRA's appeal over PT Sumi Asih is rejected," the chief
Supreme Court judge in the case, Paulus Lotulong, said in a
document obtained by AFX-ASIA.

Lotulong said the reason for the rejection was because
"there is need for further clarification on the amount of
the company's debt.  And this (clarification) should be
done through the general district court, instead of through
the commercial court."

He said IBRA and Sumi Asih had different estimates on the
amount of Sumi Asih debts and that difference needs to be
"settled."  IBRA has put Sumi Asih's outstanding debt at
73.937 bln rupiah and 6.728 mln usd as of January, while
Sumi Asih has only recognized debts worth 1.4 mln usd.
The Commercial Court had cited lack of evidence on Sumi
Asih's debt levels as the reason for rejecting IBRA's
petition for bankruptcy.

IBRA said, based on a financial report audited by Prasetyo
Utomo, Sumi Asih owes 1.4 mln usd to PT Bank Pelita and 2.5
mln usd to PT Bank Umum Nasional. Both banks have been
closed down.

"Supreme Court judges view that there is need to clarify
and prove the amount of debts, which should be done through
the general district court," Lotulong said.  (AFX News
Limited  14-Jun-2000)


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

FUJITA CORP.: Posts third year of annual loss
---------------------------------------------
Fujita Corp (TSE:1806) saw a consolidated net loss of 1.2
billion yen (US$11.23 million) for the year ended March 31,
the third consecutive year of red ink but much better than
the net loss of 137.7 billion yen recorded in fiscal
1998, the company announced Tuesday.

The group loss was attributed mainly to 20.8 billion yen
posted as extraordinary loss to cover appraisal loss on
real estate held for sale and bad loans. The inclusion of
poorly performing subsidiaries in the group accounts
also helped to push down the bottom line.

Group sales fell 10 percent to 540.8 billion yen, despite a
rise in the number of consolidated group companies to 57
from 11. Sales at the parent plunged by 19 percent. Group
operating profit jumped 31 percent to 24.7 billion yen as
profit from the group's construction operations increased
35 percent, thanks to cost-cutting efforts.

Debt at companies newly included in the consolidated
accounts pushed interest-bearing debt up by more than 200
billion yen to 852.6 billion yen. Group shareholders'
equity also declined by 29.3 billion yen to 20.8 billion
yen.  For the current term, the midsize general contractor
forecasts group net profit of 500 million yen. The group
will continue to write off bad loans and paper loss on
property. Sales are expected to rise 5 percent to 570
billion yen.

Fujita also said it will close unprofitable units to reduce
the number of companies included in the consolidated
accounts to 50 in the year through March 2002.  (Asia Pulse
14-Jun-2000)

NACHI FUJIKOSHI CORP.: Forecasts 3.9B yen net loss
--------------------------------------------------
Nachi-Fujikoshi Corp. is projecting a 3.9 billion yen net
loss for the year ending November, a far cry from the 700
million yen profit it posted the previous year.

The loss will in part be due to an 8.5 billion yen
extraordinary loss the company is taking to cover a portion
of a reserves shortfall for retirement pay and pension
obligations. An appraisal loss on shares held in a
subsidiary also will contribute to the net loss.

The company's retirement allowance reserves were short 19
billion yen at the end of November 1999, assuming a 3.5
percent discount rate. Of that total, Nachi Fujikoshi plans
to cover 6.7 billion yen in the current term, the remainder
in equal installments over 10 years from the next term.

The bearings and tools manufacturing company expects its
pretax profit to grow to 2 billion yen, more than its
initial 1.8 billion yen projection.  Sales, meanwhile, are
expected to rise six percent to 123 billion yen. Operating
profit is projected to jump 30 percent to 3.5 billion yen.

During the first half (ended May 31), the company foresees
posting a 4.5 billion yen net loss, a deep drop from its
600 million yen profit last year. Sales during the six-
month period totaled 61 billion yen, up slightly from last
year.

NIIGATA CHUO BANK: Posts annual loss of 186B Yen
------------------------------------------------
Having been declared insolvent in October 1999, Niigata
Chuo Bank reports that it posted a 186 billion yen net loss
for fiscal year 1999 ending March 31.

The bank attributed the loss to bad debts being written off
under the supervision of its receiver. The bank recorded
current revenue of 28.3 billion yen for last fiscal year, a
drop of 27 percent from the prior year. Net operating
profit, meanwhile, also dropped some 77 percent to 1.8
billion yen.  Loans and deposits declined due to an erosion
of creditworthiness. Outstanding loans fell 20.4 percent to
775 billion yen, and the balance of deposits plunged 45.9
percent to 569.4 billion yen.  Liabilities exceeded assets
by 168.7 billion yen, increasing 200 percent from 83.5
billion yen as of last September.

SKYMARK AIRLINES: Posts 6-month net loss
----------------------------------------
Skymark Airlines, Japan's first discount air carrier,
reported a parent net loss for the half year to April 30 in
its first announcement of interim results.

The Tokyo-based company posted a net loss of 1.73B yen in
the first half of the business year to October 31 on sales
of 6.4B yen. No consensus estimates were available for the
small airline, though company spokeswoman Takako Yamada
said before the results were announced that first-half
figures would be in line with the year-earlier period.

The Nihon Keizai newspaper this morning said without citing
sources Skymark would post a half-year loss of 1.7B yen
owing to higher jet fuel prices. Domestic rivalries
increased from February when the government scrapped
regulations governing airfares.

TOMEN CORP.: Stock continues to flounder
----------------------------------------
In February, shares of Tomen Corp. fell to worst-ever low
of 44 yen, and they continue to floundering.

Trading activity has come primarily from retail players
aiming to make short-term gains. As of June 2, the stock's
short margin balance was 840,000 shares, with the long
margin balance just over 7.2 million shares. From a supply
and demand perspective, the stock continues to be
unattractive. Consequently, there is little activity in the
stock.

In the fiscal year ended March 31, Tomen Corp. recorded a
consolidated extraordinary loss totaling some 378 billion
yen. The company's credit-worthiness is considered stable,
in part because Tokai Bank and other institutions have
agreed to waive 219 billion yen of debt.

The company has set aside allowances for its nonperforming
assets in excess of 90 percent. NPLs had grown to 440
billion yen. Tomen expects to post additional charges of
only 26 billion yen related to its restructuring effort in
this fiscal year.

As part of its restructuring, the company plans to
liquidate or sell 207 group companies. It also plans to cut
its group interest-bearing debt by some 200 billion yen,
reducing it to just about 1 trillion yen by the end of this
fiscal year.


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

DAEWOO GROUP: KAMCO to buy 4T won in CPs at 20% discount
--------------------------------------------------------
Government-run Korea Asset Management Corp. (KAMCO) will
buy commercial paper (CP) issued by units of the failed
Daewoo Group from local financial institutions at a
discount ratio of 20 percent to 30 percent, a high-ranking
government official said yesterday.

The official said the government sent a letter telling
KAMCO to purchase the CP totaling four trillion won in book
value at a recovery ratio of 70 percent to 80 percent by
the end of this month. The government also instructed KAMCO
to buy as much CP as possible at 80 percent of the original
value.

At a recovery rate of 80 percent, domestic financial
institutions will likely suffer a combined loss of 800
billion won. Investment trust companies and brokerage firms
are expected to lose 460 billion won, and banks and
insurance companies 340 billion won.  Local financial
institutions held the Daewoo CP as collateral for emergency
loans to the crumbling conglomerate last year.

KAMCO, a holding company for nonperforming assets, began
negotiations with local financial institutions to determine
the discount ratio for the CP, but talks have been stalled
due to wide differences over valuation.  Local investment
trust companies demanded KAMCO pay a full 100 percent for
the CP, while the bad-loan agency offered a rate of 60
percent. (The Korea Herald  15-Jun-2000)


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

MAY PLASTICS INDUSTRIES: Expects year-end rehab completion
----------------------------------------------------------
May Plastics Industries Bhd expects its restructuring
exercise to be completed by year-end, its executive
director David Leong Kam Luen said.

According to Leong, the parties involved in the proposed
revamp exercise was still finalising details of the
restructuring.  He said after the May Plastics EGM in Kuala
Lumpur on Tuesday that after the completion of the scheme,
KSU Holdings Bhd--a newly incorporated company--will take
over the listing status as well as the management of the
May Plastics group.

Leong noted that May Plastics would then change its status
from a public company to that of a private company and
would be known as May Plastics Industries Sdn Bhd.  When
May Plastics announced the deal in July last year, it had
said that the restructuring had been expected to be
completed by January this year.

The scheme comprises an internal restructuring whereby the
existing shareholders of May Plastics will exchange their
shares for new KSU shares on a two-for-one basis. Following
the restructuring, May Plastics will become a wholly owned
subsidiary of KSU. There will also be a warrant exchange
whereby the existing unexercised warrants of May Plastics
will be cancelled and replaced with new warrants in KSU on
a one-for-one basis.

May Plastics had said that the restructuring was proposed
on the back of a worsening financial position and the
company's inability to service payments of borrowings and
interest payments.  The scheme will also see the company's
diversification into property development as its core
business from manufacturing.

Leong said May Plastics' export segment had been affected
by the increasing price of raw materials due to the pegging
of the ringgit to the US dollar when compared to pre-
economic downturn rates.  He said that as a result of the
higher raw material cost, the company's profit margin had
been reduced, adding that the export prices had become
cheaper with the fixed exchange rate. (The Star Online  15-
Jun-2000)


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

ALL ASIA CAPITAL & TRUST: Facing liquidity squeeze
CORPORATE INVEST.PHILIPPINES: Facing liquidity squeeze
EAST ASIA CAPITAL CORP.: Facing liquidity squeeze
------------------------------------------------------
Three investment houses are experiencing liquidity problems
following a rash of pretermination of investor placements
since last month and well-placed sources in the industry
say new capital infusions -- along with, for some,
management changes -- appear necessary.

For instance, at All Asia Capital and Trust Corporation,
major shareholders have reportedly expressed interest in
infusing additional capital into the investment house
provided it is run by a new management team.

"The major shareholders are willing to put in additional
capital," a BusinessWorld source in the industry said
yesterday, "but they will definitely want to install new
managers."

All Asia reportedly needs about one billion Philippine
pesos ($0.024 billion at PhP42.465=$1) in fresh equity to
meet its immediate liquidity requirements.   The source
added All Asia's shareholders have "deep pockets" and can
easily fund a capital call.

"Lombard, IFC and Land Bank have already committed to
support them," the source said, referring to Lombard Asian
Private Investment Company (Lapic), the World Bank's
private investment arm International Finance Corp. (IFC),
and Land Bank of the Philippines.  Other local shareholders
are the Chemical Industries of the Philippines (Chemphil),
the Manila Bay Group of Companies, Cagayan Electric Power
and Light Co., Alcantara and Sons and the Armed Forces of
the Philippines Retirement and Separation Benefits System
(AFP-RSBS).

Banking sources said All Asia has been hit with
preterminations of placements or investments since last
month.  But while it remains solvent, the sources said it
is having difficulty meeting these preterminations.  Most
of All Asia's assets are reportedly in real estate and
long-term commercial papers (LTCP), which are difficult to
liquidate under prevailing market conditions.

In a bid to help the industry, the Bankers Association of
the Philippines (BAP) will set up an active secondary
market for commercial papers held by illiquid investment
houses.  Sources said that while investment houses have
enough assets to meet their liabilities, most are tied up
in LTCPs.

For its part, IFC, the World Bank's private investment arm,
said it is not worried about the current status of the
insurance company. It even expressed optimism All Asia will
soon get over its woes with the possible entry of new
investors.  IFC is both a major lender to and a shareholder
in All Asia with debt and investment exposure of at least
PhP1 billion ($0.024 billion). The bulk of its exposure is
a $17-million loan. It also has a seven percent equity in
the firm.

"We're not pulling out. All Asia is trying to get a foreign
partner," IFC country manager Vipul C. Prakash said in an
interview on the sidelights of a Metrobank conference on
export financing held at the Makati Shangri-La in central
Metropolitan Manila yesterday.  "Ours is a long-term debt.
It stays whatever happens, and we've been here for 20
years," he added.

All Asia has been trying to generate fresh funds from
strategic investors for more than a year now, but
negotiations have been stuck on the issue of control.
The insurance firm has spoken with two US-based financial
agencies, but Mr. Prakash declined to identify them.

Another investment house, East Asia (AEA) Capital Corp.,
has also been hit with liquidity problems, sources said.
East Asia was also affected by the rash of withdrawals that
hit the investment house industry since the Westmont
Investment Corp. (Wincorp) fiasco in March. East Asia
clients contacted by BusinessWorld said they have reached
an "informal restructuring arrangement" with the investment
house last month.

"Our principals are still tied up, but they have been
servicing interest payments," one client said.

East Asia caters to mostly high-net worth accounts worth at
least PhP30 million ($0.706 million) per account. Industry
sources said, however, the investment house is negotiating
with the group of businessman Benjamin Bitanga to infuse
additional capital.  The source said Mr. Bitanga's group
includes Harry Tan, the brother of tobacco and beer magnate
Lucio C. Tan. "That group is 'fronting' for Mr. Tan," the
source claimed.

Another investment house, Corporate Investments
Philippines, Inc. (CIPI), was also hit by liquidity
problems.  Shareholders of CIPI include the San Miguel
Retirement Fund (SMC Retirement) with 30%, the Coca-Cola
Retirement Fund with 30%, the Archdiocese of Cebu with 20%,
and CIPI president Aton Atilano with 20%.

The source said CIPI's liquidity problems stem from the
failure of SMC Retirement to assist with fresh liquidity.
"SMC Retirement was hit by the closure of Urban Bank, and
they could not provide cash to CIPI," the source said.

Officials of the three investment houses -- the latest in a
string of troubled financial institutions -- could not be
reached for comment. (Business World  16-Jun-2000)

PHILIPPINE NAT.BANK: L.Tan,RCBC drop bid for gov't stake
--------------------------------------------------------
The National Government may be left holding the bag in
semiprivate Philippine National Bank (PNB) as two
prospective bidders this early claim to have lost interest
in acquiring its remaining 30.39% stake.

Chinese-Filipino businessman Lucio C. Tan, who claims to
have a controlling 46% stake in the country's fourth-
biggest bank, yesterday said he will not join the bidding
for the government's shares, expected to be held within the
year.  Asked why, the tycoon told reporters on the
sidelines of yesterday's annual stockholders meeting of
holding firm Tanduay Holdings, Inc. at the Century Park
Sheraton Hotel in Manila: "Money little...(I) Don't have
much money."

The Department of Finance (DoF) hopes to raise as much as
9.6 billion Philippine pesos ($0.226 billion at
PhP42.415=$1) for its 30% stake in PNB, and has placed a
tag price of at least PhP140 ($3.30) per share.  Finance
Secretary Jose T. Pardo earlier said the government may
open the bidding for its 30% stake to Mr. Tan, raising the
possibility the tycoon may end up owning around 76% of PNB.

But at yesterday's Tanduay stockholders meet, Mr. Tan also
said he is willing to sell his stake in the bank within the
year.

"We're selling it subject to negotiations... within the
year... if the price is right," he told reporters.

Mr. Tan earlier agreed to selling his stake, along with
that of the government, if the floor price would be set at
PhP160 ($3.77)apiece, representing a 12% premium on his
investments.  Meanwhile, another prospective bidder for the
government's 30% stake, Yuchengco-owned Rizal Commercial
Banking Corporation (RCBC), said it wants nothing less but
a controlling interest in PNB.

In yesterday's disclosure to the Philippine Stock Exchange,
RCBC said its interest in the PNB bidding was premised on
the availability of a controlling block for sale.
"RCBC's objective would be to acquire the controlling
interest of a bank for sale as the intention is eventually
merger and consolidation," the bank said.

This douses hopes that RCBC will participate in a second
bidding if the government pushes through with a plan to put
on auction its 30% stake.  RCBC had ended up as the lone
prequalified bidder for the sale of more than 70% of PNB.
Since the rules require at least two prequalified bidders,
the auction was declared a failure.

The LNL Templeton Group led by New York-based TLC Beatrice
LLC, the other group that failed to meet the deadline for
prequalification, now emerges as the only prospective
investor for the government's stake.  TLC Beatrice
chairperson Loida Nicolas-Lewis earlier said her company is
also keen on negotiating for Mr. Tan's 46% stake in the
bank.

While the dilution of its stake to 30% from last year's 46%
had reduced the premium on the government's interest in
PNB, economic managers are still open to the possibility of
being further diluted when the bank holds a stock rights
offering to raise fresh capital.  Bangko Sentral (Central
Bank) Gov. Rafael B. Buenaventura had said the government
can no longer afford to put in more funds in PNB.

He also raised the possibility the state may decide to
temporarily hold on to its shares in the bank until such
time that it can command a better price.

In a related development, the World Bank said it has given
the government until June next year to draw the last
tranche from a $300-million loan facility.

However, the multilateral lending agency said it is still
waiting for the Department of Finance to come up with a new
privatization plan for PNB before it releases the second
tranche of the loan.  World Bank country director Vinay
Bhargava said the bank has approved the government's
request for a one-year extension of the deadline to comply
with the loan conditionalities.

The last tranche of the loan hinges on reforms in the
banking industry, particularly improvements on banking
supervision, to be implemented under the New General
Banking Act of 2000.  While the law had already been
enacted last month, the National Government still needs
"more time" to implement it, Finance Undersecretary Joel A.
Ba¤ares said in an earlier interview.

The World Bank's Mr. Bhargava, however, said the second
tranche of the loan has yet to be released since the
government has yet to submit a new privatization plan for
PNB.

"We are waiting for the government to tell us what they
will do (with PNB)," Mr. Bhargava told reporters during a
cocktail party at the bank's head office the other night.
"All requirements have to be met," he stressed.

Mr. Bhargava also said the World Bank is still waiting for
the sale to push through.  He added the bank is not
concerned with the eventual buyer of the government's stake
in the bank or the mode of privatization.

"It just has to be open and transparent," he said.

The World Bank earlier set a June 10 deadline for the sale
of PNB as a condition for the release of the second
tranche. But the sale did not push after only one investor
prequalified for the bidding, making it a failed bid.
(Business World  15-Jun-2000)

PHILIPPINE NAT.BANK: Tan willing to sell shares at a loss
---------------------------------------------------------
Beer and tobacco magnate Lucio Tan said yesterday he wants
to immediately sell his 46-percent stake in troubled
Philippine National Bank (PNB) even at a loss.

He also said he would not buy the government's 30-percent
stake in the bank since he does not have enough money.
In an interview with reporters after the stockholders'
meeting of Tanduay Holdings, where he sits as chairman, Tan
denied rumors going on in the industry that he is holding
on to his equity in the bank and is in fact negotiating for
the purchase of the government's 30-percent shares in PNB
to give a total of 76-percent equity.

"We will wait for government instructions. But we will not
buy (government shares). Money is limited. Not much money
to buy. We will rather sell," he said. "We want to sell
ASAP (as soon as possible)."

Tan said he is losing money in the bank since he bought PNB
shares at almost P200 per share at the secondary market.
Yesterday, PNB shares lost P2.50 closing at P67 per share.
Asked if he would sell his shares even at a loss, he said
"yes."

However, he said nobody has called him up asking if he is
willing to sell his shares in the bank and at what price.
Among those who were reportedly interested to acquire his
and government's shares in PNB are Filipina billionaire
Loida Nicolas Lewis and the Rizal Commercial Banking Corp.
(RCBC), majority-owned by the Yuchengco family.

In a previous interview, RCBC vice-chairman Alfonso
Yuchengco III said they would be willing to look at the PNB
shares "at the right price."  RCBC and the group of Lewis
were pre-qualified to join the joint sale of the
government, Tan, and PNB Retirement Fund's combined 80-
percent stake in the bank scheduled on June 9. But the
bidding did not push through since Lewis was disqualified.
Lewis has said their group would talk with Tan's camp.

Last year, PNB posted a net loss of P9.874 billion, up from
P7.25 billion in 1998. During the first quarter of the
year, it posted a net loss of P933 million. These losses
were due to the huge amount it has set aside for
provisioning for bad debts.

Provisions for bad debts are treated as an expense and
therefore deducted from the bank's operating income. As of
end-April, the bank had allocated P21 billion, almost three
times than the P8 billion provided in end-December 1999.

The bank also has among the highest non-performing loan
(NPL) ratios in the industry at 33 percent as of end-April.
This means that out of its P110 billion total loan
portfolio during the period, some P36.3 billion were not
paid for three straight months. The average NPL ratio for
the industry was 14 percent as of March. (Philippine Star
15-Jun-2000)

VICTORIAS MILLING CO.: In talks with European investor
------------------------------------------------------
Victorias Milling Co. (VMC) is in talks with a European
firm which has expressed willingness to invest in the cash-
strapped sugar mill.

A VMC official said they are now negotiating with a
diversified company based in the United Kingdom willing to
acquire a majority stake in the country's largest sugar
mill.

"They're willing to be majority shareholder which would
involve of course the infusion of funds and the acquisition
of shares," the VMC official said.

The source, however, refused to disclose the name of the
UK-based company, though the source said they might offer
70% of the company to the new investor if talks prove
successful, leaving existing shareholders with a 30% stake.
The source said they have yet to receive a formal
investment proposal from the UK-based firm but creditor
banks are already aware of the talks.

The company official said the firm will submit a formal
proposal once the Securities and Exchange Commission (SEC)
approves the company's revised rehabilitation plan. "They
want to make sure that what they submit will be acceptable
to the mancom (management committee) and VMC. (Business
World  15-Jun-2000)


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

ANGEL AIR: At risk of losing rights to routes
---------------------------------------------
The Aviation Department will consider granting Angel Air's
existing routes to other airlines if requested, according
to Itti Sirilatthayakorn, the deputy transport and
communications minister.

Mr Itti, who supervises the Aviation Department, said the
temporary suspension of services by Angel Air did not
breach its contract but would cause it to lose its
concession rights to the routes.  As a result, if any other
private airline wanted to fly the routes and applied for
the concessions, the department would have to consider
them, he said.

Somchai Bencharongkul, Angel Air's president and chief
executive, confirmed that his company had recently
suspended all flights, but only for the purpose of
restructuring the company.  The month-long suspension of
service began on June 1.  The revamp ranges from selecting
a more suitable type of aircraft to adjusting the existing
route network in a bid to overcome its weaknesses.

After almost two years in business, the airline was plagued
with problems related to personnel and aircraft, making it
difficult to run the company smoothly, Mr Somchai said in a
statement. Chatrachai Bunya-Ananta, executive chairman of
PB Air and a former president of THAI, said Angel Air's
problem was capital shortage and the inability to finance
aircraft acquisition.

The company's aircraft lease has not been paid since last
December. The airline was also unable to pay the lease on
another aircraft provided by Malaysia Airlines.  Angel Air
started its operation without aircraft of its own and has
relied on leased planes. Earlier, its Bangkok-Singapore
service, which was in one of the most competitive markets
in Southeast Asia, was forced to close due to strong
competition from THAI and Singapore Airlines.

Prior to its suspension, Angel Air reported a monthly loss
of Bt20 million. Somchai also earlier sought government
approval for a foreign capital injection into the cash-
strapped airline by allowing up to 49 per cent foreign
shareholding from the present 15 per cent .

To improve the management's efficiency, the company had
decided to suspend all flights for a short time. Somchai,
Angel Air's president and chief executive officer, said the
airline would resume services after the restructuring.

The restructuring programme began with the appointment of
Virachai Vannukul as chief strategist and adviser to the
president and chief executive.  Mr Virachai has extensive
experience in the airline business and finance. He was
formerly an adviser to Bangkok Airways.  Another new member
of the senior management team is Air Chief Marshal
Yuthapong Kittikachorn, who is now vice-president of
operations and engineering, and of safety and quality
assurance.

The company is also seeking a new route network and a new
type of aircraft to suit its marketing plan.  A plan to
establish agreements with other airlines is also under
consideration.  The airline's spokesman said that the
airline had only temporarily suspended the service in order
to improve it.

Meanwhile, United Communication Industry Plc clarified that
it did not have an interest in the airline. The airline is
owned by the Bencharongkul family and has nothing to do
with Ucom.  The Bangkok Post reported yesterday that Ucom
was one of Angel Air's major shareholders. The spokesman
also said that some of the staff had resigned voluntarily
to work for other airlines with better perks and flying
routes.

Many of the company's 200-plus employees had reportedly
resigned.  "Most crew would prefer flying to London or
Paris so they could shop. Angel Air flies only to Kunming,
a far cry from European destinations shoppers favour. So it
is natural for them to seek better working opportunities,"
the spokesman said.

Of the airline's 70 flight attendants, 20 had resigned
after they had been informed they would get only half of
their June salaries.  Nine of them joined Thai Airways
International (THAI); five worked for other airlines and
the remaining six started their own business, said a source
in the airline.

A source at the Aviation Department said that the
executives of THAI had unofficially discussed with Angel
Air the possibility of forming a joint venture. However, a
deal had not been concluded, he said.  Angel Air was now
negotiating with a Singaporean potential partner to help
solve its financial problems, the department's source said.
(Bangkok Post, The Nation  15-Jun-2000)

KRUNG THAI BANK: Restructures Bt30B of bad loans in May
-------------------------------------------------------
Krung Thai Bank (KTB) announced yesterday that it has
successfully restructured bad loans of more than Bt30
billion in May alone.

The latest figure amounts to nearly 150 per cent more than
the aggregate restructured loans reported since the
beginning of 2000. The bank also expects that it will be
able to exceed its early forecast of Bt170 billion
restructured loans by this year end.  KTB president Singh
Tangtatswas said that the bank's asset management
department reported successfully restructuring 15,399
accounts with assets worth Bt47.01 billion. (The Nation
16-Jun-2000)

SUBMICRON TECHNOLOGY: Assets go into receivership
-------------------------------------------------
Charn Uswachoke's hopes of reviving Submicron Technology
Plc were dented yesterday when the company's assets were
placed in receivership.

The Central Bankruptcy Court's action followed claims
against the company and Mr Charn totalling 80.72 billion
baht from 250 creditors. The company had booked its debts
at 19 billion baht. Mr Charn had hoped to save the
electronics manufacturer by negotiating with the creditors
on restructuring the debts.

The Legal Execution Department had set June 5 as the
deadline for local creditors to submit evidence to back
their claims. It will verify the evidence today and examine
the objections made by some creditors against others'
claims. Foreign creditors are required to submit their
evidence by the end of August.

Siam City Bank initiated the action last year, lodging a
claim for about one billion baht.  However, Submicron said
although its debts totalled 19 billion baht, it had not
made full use of credit lines made available by financial
institutions.

A department official said the claims had yet to be broken
down into those against Mr Charn and those against
Submicron. However, one of the biggest creditors was
Alphatech Electronics, a Submicron subsidiary, which
claimed that Mr Charn owed it 24.5 billion baht. Mr Charn
and Submicron's creditors will meet on June 23 to discuss
for the first time a debt-restructuring petition filed by
the company with the department.

Mr Charn said that the debts should not, in fact, exceed 20
billion baht. He acknowledged that the large value of
claims made could pose a major obstacle to the
restructuring plan.  Turning to personal liabilities, Mr
Charn said that Submicron had made claims against him
exceeding 20 billion baht. As well, creditors of Alphatech
had filed claims totalling 10 billion baht.

"I'll continue my fight. At this point, there is no way to
escape. I only hope that Submicron can be turned around,"
Mr Charn said.

To support the restructuring proposal, he hoped to find new
investors to fund Submicron's planned wafer fabrication
plant. Submicron would not ask creditors to accept a loss,
he said. The restructuring period would be seven years and
would dilute his stake in Submicron Technology to less than
10%.   (Bangkok Post  15-Jun-2000)


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