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

                            A S I A   P A C I F I C

             Thursday, June 22, 2000, Vol. 3, No. 121

                                      Headlines


* A U S T R A L I A *

FOXTEL: Rumors of its demise exaggerated? premature?
FOXTEL: Looking at $80M loss


* C H I N A  &  H O N G  K O N G *

BOGO ENGINEERING (EQUIP.SUPPLY): Facing winding up petition
CIL HOLDINGS LTD: Report trade debt settlement to HKSE
HANNY MAGNETICS HOLDINGS: Ex-chief to pay $47M
PAM & FRANK INDUS.CO.LTD: Report on winding up to HKSE
UNIVERSAL PROP.MGMT.SVCS.LTD: Facing winding up petition


* I N D O N E S I A *

PT ASTRA OTOPARTS: Seeks rollover for foreign debt
PT BANK BALI: Jakarta bank chief held in graft probe
PT UNGGUL INDAH CAHAYA: To issue bonds to repay debts


* J A P A N *

AUTOMOBILE FOUNDRY CO.: Posts 486M yen group net loss
CRESVALE INT'L: Ex-chief guilty of tax evasion
MYCAL CORP.: To pledge store assets to slice debt
NIHON BUILDING PROJECT CO.: Files for court protection
NIPPON SHEET GLASS CO.: Initiates debt-cutting program
SOGO CO.: To sell flagship store


* K O R E A *

DAEWOO GROUP: Magazine exposes secret account


* M A L A Y S I A *

LANDMARKS BHD: To divest hotel assets to repay debts
TIME ENGINEERING: May be less creditor support than thought


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

CARLOS PUBLISHING CO.: Tabloid publisher closed down
PHILIPINE NATIONAL BANK: Gov't stake sale back on
UNIWIDE GROUP: Opposes motion for plan modification
URBAN BANK: Suffered 83% profit plunge before closure
VICTORIAS MILLING CO.: Two more banks reject VMC plan
WESTMONT INVESTMENT CORP.: SEC tightens noose on execs


* T H A I L A N D *

ELEC.GENERATING AUTH.OF THAILAND: To borrow to reduce debt
METRO. ELEC.AUTHORITY: To borrow to reduce debt
METRO. WATERWORKS AUTHORITY: To borrow to reduce debt
PARIBAS EQUITIES: CSFB buys dormant firm
PROVINCIAL ELEC.AUTHORITY: To borrow to reduce debt
STATE RAILWAY OF THAILAND: To borrow to reduce debt
THAI PETROCHEM.INDUS.: Expects new plan by end of July
THAI PETROCHEM.INDUS.: Refinery closure imminent
THAI PETROCHEM.INDUS.: Debt-laden firm must raise $750M


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

FOXTEL: Rumors of its demise exaggerated? premature?
----------------------------------------------------
Telstra played down rumours that News Corp and PBL were
moving to extricate themselves from Foxtel to join Optus's
pay-TV vehicle, Optus Television.

News Corp newspapers and PBL's Nine Network both reported
speculation about a Foxtel break-up yesterday, increasing
the pressure on Telstra to expand the pay-TV partnership to
include interactive and internet services. Telstra has so
far refused to involve News Corp and PBL in those
businesses. But people familiar with the situation said
recent changes to the Foxtel board and the departure of
Foxtel chief executive Mr Tom Mockridge had altered the
relationship between the stakeholders.

Mr Rupert Murdoch's News Corp, Mr Kerry Packer's Publishing
& Broadcasting and Telstra appear closer to resolving their
differences at pay-television group Foxtel, as the
difficulties involved in abandoning the multibillion-dollar
venture push the parties towards the negotiating table.

Foxtel's shareholders are privately hinting that the pay-TV
group could finally become a diverse broadband delivery
platform, the outcome sought by PBL and News Corp for more
than a year.  The apparent thawing of relations between
them appears to be driven by several factors, including
recent changes to Telstra's representatives on the Foxtel
board and persistent speculation that News Corp and PBL
might abandon Foxtel to join forces with Telstra's rival,
Cable & Wireless Optus.

Foxtel's chief executive, Mr Jim Blomfield, told The
Australian Financial Review yesterday that the
"relationship between the partners, from my perspective,
seems to be very healthy and we look forward to getting on
with our business.  I don't think anyone's going to walk
away from a business as healthy as that," he said,
referring to Foxtel's 650,000 national pay-TV subscribers.

While Telstra would not comment specifically on the break-
up rumours, it noted that "Telstra and its partners are
united by exclusive rights and non-compete agreements which
are firm."  The Foxtel partnership agreement struck in June
1997 specifically binds PBL, News Corp and Telstra to
advance the interests of Foxtel and links programming
agreements to the pay-TV company, making it difficult for
News Corp to switch to Optus without losing access to much
of its pay-TV content.

Optus has been talking to the Packer and Murdoch camps for
months as it seeks a deal to unlock the value of its
national broadband cable network. The company was close to
joining with ninemsn, the internet portal controlled by PBL
subsidiary ecorp and Microsoft, but talks collapsed when
Optus refused to widen the deal's terms to incorporate
access to its mobile telephony division.

Investors reacted enthusiastically to rumours of a Foxtel
break-up yesterday, pushing Optus shares up 29› to $4.69
and PBL 28› higher to $12.80.  Ordinary News Corp units
fell 15› to $22.99, and its preferred stock dropped 30› to
$19.30.

The company's shares have risen strongly in recent weeks
ahead of the release of details of News Corp's $US40
billion Platco satellite spin-off, which seemed likely to
be revealed overnight in New York. (Australian Financial
Review  21-Jun-2000)

FOXTEL: Looking at $80M loss
----------------------------
The Foxtel pay TV service is forecasting losses of $79.9
million this financial year and $87 million in 2000-01,
according to internal budget documents obtained by the
Herald.

The documents reveal that while Foxtel is adding
subscribers at a solid rate - Foxtel will reach 636,000
subscribers by June 30, short of the 713,000 target it had
budgeted for - its expenses are continuing to grow rapidly
as well.  The documents also show sharp rises in the fees
paid for programming, the cost of its customer service
centres, sales force, marketing and engineering and
technology costs associated with keeping the network
functioning.

It suggests that Foxtel may well be suffering from the same
syndrome that has plagued other payTV operators such as
Cable & Wireless Optus and the now defunct Galaxy: that it
is virtually impossible to make money out of pay TV alone.
The future of Foxtel has been the subject of months of
speculation because of serious tensions between the three
shareholders: Telstra (with 50 per cent), News Ltd (25 per
cent) and Publishing & Broadcasting (25 per cent).

News and PBL have become increasingly frustrated by
Telstra's refusal to broaden Foxtel's rights to the cable,
which are currently restricted to pay TV. Both want to be
able to develop other broadband interactive services on
Telstra's cable. So far, Telstra has refused to budge.
But the draft profit and loss statement obtained by the
Herald suggests there may be solid financial reasons for
News' and PBL's dissatisfaction.

Foxtel will make $389.7 million from subscriber revenues
this financial year, and $103 million from other sources
such as advertising, licensing channels to Austar and from
revenue shares foregone by the partners.  But expenses are
also forecast to grow. Some of these are a function of the
number of subscribers. For instance, most program deals are
based on the number of subscribers.

According to the profit and loss statement, "variable
subscriber costs in 1999-2000 will be $291.6 million,
resulting in 'a subscriber margin' of $98.1million this
year."

But Foxtel has "core operational expenses" such as
maintaining a sales and marketing team, customer service
centres, and various network costs. These are also growing
and are expected to be $151.8 million for this financial
year.  The real problem for Foxtel is in the coming
financial year. It is unclear whether the profit and loss
statement includes the costs of taking the cable network
digital, although the documents indicate that the Foxtel
partners have still not agreed on when this will occur.

Foxtel will need to begin replacing every set-top box in
customers' homes and it will also probably need to acquire
additional program rights for pay-per-view movies, which
will be the big driver in the switch to digital services.
What the budget forecasts show is that as Foxtel adds
subscribers, many of the core expenses also will grow.

The 2000-01 budget has Foxtel adding 164,000 subscribers to
reach a total of 800,000 by June 2001. These will generate
revenues of more than $500 million, but both variable and
core expenses will grow too.  The big blow-outs are in
program fees, up $62 million; field service expenses, up
$18 million; sales, up $6.4 million; engineering expenses,
up $9 million; and IT costs, up $5 million.

Many of the core expenses, such as the cost of sales teams,
seem to be directly influenced by subscriber numbers.
Sources within Telstra said the carrier was willing to
negotiate on the use of its cable but was not prepared to
give away its assets.

The additional capital spending to take the Foxtel cable
digital is one of the factors focusing the partners' minds
on their future in Foxtel.  The other major factor is the
opportunity offered by rival pay TV operator Optus, which
is searching for investors in its cable network. (Sydney
Morning Herald  22-Jun-2000)


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

BOGO ENGINEERING (EQUIP.SUPPLY): Facing winding up petition
-----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for July 19 on the petition of Chiu
Ka Wah for the winding up of Bogo Engineering (Equipment
Supply) Limited. A notice of legal appearance must be filed
on or before July 18.

CIL HOLDINGS LTD: Report trade debt settlement to HKSE
------------------------------------------------------
CIL Holdings Limited, through Joseph Szeto, Chairman and
Managing Director, reports that on 20 June 2000, the
Company entered into a subscription agreement (together,
the "Settlement Agreements") with three creditors (the
"Creditors") of the Company and its subsidiaries (the
"Group").

Pursuant to the agreement, the Company has agreed to allot
and issue an aggregate of 138,000,000 shares (the
"Settlement Shares") of HK$0.10 each in the share capital
of the Company (the "Shares") to the Creditors, at a price
of HK$0.10 per Settlement Share (the "Settlement"). The
subscription price of the Settlement Shares will be settled
by setting off against the indebtedness due by the Group to
the Creditors.

The Creditors are sub-contractors of the Group and the
indebtedness due by the Group to the Creditors were
incurred in the ordinary and usual course of business of
the Group.

1. Parties

The issuer : CIL Holdings Limited (the "Company")
The subscribers : a) Hennison Services Limited: 65 million
Shares
b) Hoi Yee Construction & Engineering Co: 33 million Shares
c) Neway Engineering Limited: 40 million Shares
(together the "Creditors").

As at the date of this announcement, the Group is indebted
to the Creditors in the aggregate sum of HK$13,800,000.
After the completion of the Settlement, the existing
outstanding debts of the Company due to the Creditors will
be fully repaid.

The Creditors are third parties independent of, not
connected with, the directors, chief executive of the
Company or any of its subsidiaries or an associate (as
defined in the Listing Rules) of any of them. The Creditors
are sub-contractors of the Group and the indebtedness due
by the Group to the Creditors were incurred in the ordinary
and usual course of business of the Group.

2 Number of Settlement Shares:  138,000,000 Settlement
Shares which represent about 4.8 per cent. of the Company's
issued share capital at the date of this announcement and
about 4.6 per cent. of its issued share capital of the
Company as enlarged by the Settlement.

3 Subscription price:  HK$0.10 per Settlement Share. The
subscription price of the Settlement Shares will be
satisfied by setting off against the indebtedness due by
the Group to the Creditors. The subscription price of the
Settlement Shares represents (i) a premium of about 85.2
per cent. to the closing price of HK$0.054 per Share on 20
June 2000; and (ii) a premium of approximately 127.3 per
cent. to the average closing price of approximately
HK$0.044 per Share from 7 June 2000 to 20 June 2000, both
dates inclusive, being the last ten trading days
immediately before and including the date of this
announcement.

The subscription price was determined after arm's length
negotiations between the Company and the Creditors and is
equal to the nominal of the shares in the capital of the
Company. The Directors consider that the terms of the
Settlement Agreements are fair and reasonable and are in
the best interests of the Company and its shareholders.

4 Conditions of the Settlement:  The Subscription is
conditional upon: (i) the Listing Committee of the Stock
Exchange agreeing to grant a listing of and permission to
deal in the Settlement Shares; and (ii) if required, the
Bermuda Monetary Authority granting its consent to the
allotment and issue of the Settlement Shares.

5 Completion of the Settlement:  The completion of the
Settlement will take place on the second business day,
being any day on which the Stock Exchange is open for the
business of dealing in securities on which the conditions
set out in the section headed "Conditions of the
Settlement" above are fulfilled (which is expected to be no
later than 30 June 2000).

If the conditions are not fulfilled on or before 5 July
2000 (or such later date as may be agreed by the relevant
Creditors and the Company), the Settlement Agreements will
lapse.

6 Mandate to issue new Shares:  The Settlement Shares
representing about 4.8 per cent. of the existing issued
share capital will be issued and allotted pursuant to the
general mandate granted to the Directors by resolution of
its shareholders passed at the special general meeting of
the Company held on 8 April 2000.

7 Ranking of the Settlement Shares:  The Settlement Shares
will rank equally in all respects among themselves and with
all other Shares in issue on the date of their respective
allotments and issues. The Directors are not aware of any
person or company who will, immediately after the
completion of the Settlement, be interested in 10 per cent.
or more of the issued share capital of the Company (within
the meaning of the Securities (Disclosure of Interests)
Ordinance) which will have to be notified to the Company
and the Stock Exchange.

8 Reasons for the Settlement:  The Directors consider the
Settlement is beneficial to the Company and its
shareholders in the way that the Group's liabilities could
be reduced without the need of depleting the Group's cash
resources and that the relationship with the sub-
contractors can be maintained.

The principal activities of the Company and its
subsidiaries are investment holdings and contracting in
interior decoration and renovation, building and
construction services, electrical and mechanical
engineering, trading of building and interior decoration
materials and the design and manufacturing of multi-media
and digital communication products, broadband multi-media
set-top boxes, CDMA mobile phones and DVD players.

As at the date of this announcement, the bank borrowings,
other loans and creditors and trade debts of the Group
amounted to approximately HK$68 million, HK$77 million and
HK$80 million respectively. The Settlement forms part of
the Group's strategy of further strengthening its financial
position by way of reducing its liabilities and injecting
resources for general working capital by the issue of new
Shares. The Group may negotiate with other creditors to
settle the debts owed to them in the future. However, there
is no such negotiation which is currently in process.

9 Application for Listing:  Application will be made to the
Listing Committee of the Stock Exchange for the listing of,
and permission to deal in, the Settlement Shares. (Hong
Kong Stock Exchange  21-Jun-2000)

HANNY MAGNETICS HOLDINGS: Ex-chief to pay $47M
----------------------------------------------
The Insider Dealing Tribunal yesterday handed down its
highest penalties ever, ordering former Hanny Magnetics
(Holdings) chief Wong Sun to pay HK$47.4 million for
trading illicitly in the company's shares while he was
chairman.

Two other former Hanny directors, William Fung Wai-kwong
and Sanrita Wong Kwok-mei, were also deemed insider dealers
and ordered to pay fines totalling a further HK$42.2
million.  Chaired by Mr Justice Michael Hartmann, the
tribunal reached a unanimous decision to impose the
penalties on Mr Wong, bringing Hong Kong's longest-running
insider dealing case to a close.

The fines incorporate HK$17 million he made from the
dealings and a consequent penalty of HK$25 million. He must
also pay the tribunal's legal expenses of HK$5.4 million.
The former high-flier has also been banned from holding a
director's post at a listed company for four years. He
cannot even be involved in the management of a listed
company without the court's permission.

The fines way outstrip the HK$10 million slapped on Albert
Yeung Sau-shing in 1998 for insider dealing in Emperor
(China Concept) Investment shares.  In April, the tribunal
deemed Mr Wong to be an insider dealer following nearly a
year of hearings persistently dogged by the former
chairman's ill health.

Mr Wong's lawyers informed the tribunal their client had
undergone a kidney transplant in a mainland hospital late
last year after suffering from diabetes for several years.
He failed to testify at the hearings.

The tribunal deemed him to have used inside information
between July 1994 and August 1995 to reap a profit or avoid
a loss.  The dealings were made prior to pivotal deals the
company was putting together, or an announcement of dismal
results.  For example, a sharp decline in profits was
announced by Hanny in September 1994 and a fall in the
share price ensued.

One of the largest deals put together by the company in
February 1995 involving BASF also became the impetus for
illicit share trading by Mr Wong, the tribunal found.
The tribunal yesterday ordered Mr Fung to pay a total of
HK$17.8 million - incorporating a profit of HK$8 million, a
penalty of HK$8 million and the tribunal's costs of HK$1.8
million.  He was also barred from holding a company
directorship for three years.

Ms Wong must pay HK$24.4 million as a result of her acts,
the tribunal ordered.  This includes a profit made or loss
avoided of HK$10 million, a corresponding penalty of HK$12
million and the tribunal expenses of HK$2.4 million.
She cannot hold a director's position for four years.

The tribunal has the power to impose a penalty of up to
three times the profit gained or loss avoided as a result
of insider dealing, along with the original sum.  Two
others implicated during the proceedings were cleared of
any wrongdoing - Mr Wong's former secretary Connie Li Wai-
chu and Fay Loi-loi - after the tribunal found they "had
done no more than lend their names to nominee accounts
operated under the direction of Wong Sun."

It was argued by counsel for the tribunal from the outset
that Mr Wong used an array of accounts to hide his illicit
dealings.  Mr Wong's whereabouts is unknown - during the
penalty phase of the tribunal proceedings he chose not to
turn up or be represented by lawyers.  However, he had been
reported to be receiving post-operative care for the kidney
transplant in a mainland hospital.  (South China Morning
Post  21-Jun-2000)

PAM & FRANK INDUS.CO.LTD: Report on winding up to HKSE
------------------------------------------------------
The further hearing of the Petition against Pam & Frank
Industrial Company Limited (PFIL), a major subsidiary of
Pam & Frank Holdings, was adjourned to 10th July 2000.

PFIL, a major subsidiary of the Company, is a company with
significant cashflow and other financial difficulties. As
at the date hereof, PFIL has a total number of 369
creditors with aggregate outstanding liabilities of about
HK$875 million. It plans to make an offer to all its
unsecured creditors (excluding the Assignee, another
secured creditor and the other members of the Group) by way
of a scheme of arrangement to invite them to convert each
dollar of their debts for one share in the Company (the
"Proposal").

The aggregate outstanding liabilities of PFIL due to such
unsecured creditors is about HK$132 million. A total number
of about 132 million new shares in the Company will be
issued upon implementation of the Proposal, representing
about 12.6 per cent of the issued share capital of the
Company. The implementation of the Proposal will not cause
any dilution of the interest of the Group in PFIL and the
Company will comply with the relevant requirements of the
Listing Rules, including the obtaining of approval from the
shareholders of the Company, should the Proposal proceed.

In view of the large number and value of creditors involved
in the Proposal, the Board expects that no new substantial
shareholder of the Company will arise as a result of the
implementation of the Proposal.

The Proposal can only proceed if it is approved by a
majority in number and 75% in value of creditors of PFIL
and no winding-up order is made against the Company. A
further circular to the unsecured creditors of PFIL will be
sent on 23rd June 2000 seeking the views of those creditors
as to the Proposal and the results will be reported to the
Court on 10th July 2000.

If in principle agreement is obtained from the unsecured
creditors of PFIL, and subject to the resolution of the
current winding up Petition against the Company, PFIL will
proceed to apply to the court to present the formal scheme
documentation to the court for approval and to obtain
permission to convene a full meeting of creditors of PFIL.
The Company will comply with the relevant requirements of
the Listing Rules, including the obtaining of approval from
the shareholders of the Company, should the Proposal
proceed.

It was originally intended that subject to direction from
the court and the preparation of the necessary scheme
documentation, a meeting of creditors could be held in mid-
August, 2000. However, as the Court has not yet ruled on
the disputed debt which is the subject of the current
winding up Petition against the Company, it now appears
that a meeting of creditors is unlikely to take place until
late this year or possibly early next year.

Should the Proposal fail to proceed and no other
alternative debt-restructuring proposal is approved by the
creditors of PFIL and the court, PFIL will become
liquidated and the Company might be unable to comply with
paragraph 38 of the Listing Agreement. Should such
circumstance arise, trading in the securities of the
Company may be suspended.

Shareholders and investors of the Company are reminded that
the hearing of the winding-up petition filed against the
Company by Li Mei Trading Co. (which is the subject of
announcements made on 5th and 13th June 2000) has been
adjourned to 29th June 2000.

Winding-up orders may be made against PFIL and/or the
Company as a result of which PFIL and/or the Company will
become liquidated. Shareholders and investors of the
Company are advised to exercise caution when dealing in the
securities in the Company.

The Board of Directors of the Company announce that Dr
Zhongyuan Li and Mr David H.F. Kuo have been appointed as
Executive Directors of the Company with effect from 19th
June 2000. (Hong Kong Stock Exchange  21-Jun-2000)

UNIVERSAL PROP.MGMT.SVCS.LTD: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for July 5 on the petition of Wong
Pui for the winding up of Universal Property Mangement
Services Limited. A notice of legal appearance must be
filed on or before July 4.


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

PT ASTRA OTOPARTS: Seeks rollover for foreign debt
--------------------------------------------------
Car parts maker PT Astra Otoparts has asked its creditors
for between four and five years' rollover to repay its
debts of US$76.3 million.

The firm's finance director Widya Wirawan said in a letter
to the Jakarta Stock Exchange (JSX) the credit syndicate,
comprising mainly Japanese banks, has given a "positive
response to the debt restructuring proposal."

Wirawan said the company did not seek a debt to equity swap
in its restructuring proposal as its debt to equity ratio
was still safe, with loans of 90% of its equity. He said
the company also had debt in local currency amounting to
Rp7.2 billion or 106 million yen. (Asia Pulse  19-Jun-2000)

PT BANK BALI: Jakarta bank chief held in graft probe
----------------------------------------------------
Indonesia's central bank governor, Syahril Sabirin, was
detained on Wednesday by authorities probing the attempted
misuse of Bank Bali funds for political purposes.

A spokesman for the attorney general said Mr Sabirin was
"under strong suspicion of corruption" after the governor
was questioned for more than 5 hours over his involvement
in the Bank Bali scandal.  Senior deputy governor, Anwar
Nasution, a professor of economics and senior adviser under
former president Suharto, will be acting governor during Mr
Sabirin's detention.

"The detention could influence efforts to maintain
monetary, economic, and general social calm," Mr Nasution
warned in a statement on behalf of the bank's board of
governors. He added that Bank Indonesia, the central bank,
"deeply regretted" Mr Sabirin's detention.

The government is investigating the Bank Bali scandal, in
which over $80m (œ53m) of bank recapitalisation funds was
channelled into a political party linked to Golkar, the
ruling party, in February 1999. An audit requested by the
International Monetary Fund claimed that Mr Sabirin was
both aware of the transfer and present when friends and
associates of BJ Habibie, then president, plotted over how
to use the funds.

Indonesians widely believe the money was intended to fund
the re-election of Mr Habibie as president. Abdurrahman
Wahid, Indonesian president, and Marzuki Darusman, attorney
general, have repeatedly called on Mr Sabirin to resign
over his links to the scandal.

In an unprecedented move for an Indonesian central bank
governor, Mr Sabirin two weeks ago publicly defied the
president by refusing to step down, and he faces up to 20
years in prison if convicted. His lawyers said he had been
detained initially for 21 days. Legal counsel for Mr
Sabirin, Muhammad Assegaf, who also represents former
President Suharto, said the arrest was politically
motivated.

Parliamentarians also questioned the timing of Mr Sabirin's
detention, claiming the move was driven by the governor's
dispute with the president.

"It is in accordance with the hopes of Gus Dur [the
president's nickname] to force him to resign," said
Pradjoto, a legal and financial analyst, who helped make
public the Bank Bali scandal. "There is no legal reason to
detain him, he co-operated with the inquiry."

Mr Wahid is under fierce pressure from the coalition that
elected him to take moves to act against corruption and
improve corporate transparency.  Having to rely on
Indonesia's cumbersome, graft-ridden legal system is
proving a big obstacle for Mr Wahid. Instead, both he and
Mr Marzuki have turned to threats to induce the co-
operation of officials from the government of former
president Suharto.

In Cairo on Wednesday, Mr Wahid said that the threat of
prosecution would induce Mr Suharto to return most of his
personal wealth.  Mr Sabirin said that Mr Wahid and Mr
Darusman had repeatedly threatened him with prosecution
over his involvement in the Bank Bali case.

Mr Sabirin's detention is likely to add to market unease in
the weeks before Mr Wahid's August meeting with the
People's Consultative Assembly, the body that elected him.
(Financial Times  21-Jun-2000)

PT UNGGUL INDAH CAHAYA: To issue bonds to repay debts
-----------------------------------------------------
PT Unggul Indah Cahaya, Indonesia's only producer of
alkylbenzene, says it plans to issue five-year bonds,
valued at Rp1 trillion (US$125 million) to repay debts and
expand business.

Company President Hartono Gunawan said UIC had a
consolidated debt of US$120 million, down from US$138
million by the end of 1999. Gunawan said his company would
be able to operate at 90 per cent of its installed
capacity, turning out 190,000 tons of alkylbenzene this
year, up from 157,335 tons last year. (Asia Pulse  21-Jun-
2000)


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

AUTOMOBILE FOUNDRY CO.: Posts 486M yen group net loss
-----------------------------------------------------
Automobile Foundry Co. reports posting a 486 million yen
consolidated net loss for fiscal year 1999 ended March 31.

That narrowed its annual loss from the prior year by some
2 billion yen from the previous year. A reduction in labor
and materials costs contributed to the improvement,
according to the company. AFC also recorded a 1.7 billion
yen extraordinary profit from selling company plants in
Tsurumi, Kanagawa Prefecture, which further aided the
situation.

Sales totaled 26.1 billion yen, down 2 percent from the
prior year, in part to sluggish sales of truck parts to
Isuzu Motors Ltd. The company posted an operating loss of 1
billion yen, a 700 million yen improvement from the
previous year.

For this fiscal year that ends 31 March 2001, the company
is projecting a 380 million yen net loss - the seventh
consecutive year.

CRESVALE INT'L: Ex-chief guilty of tax evasion
----------------------------------------------
A former top executive of the now defunct Tokyo branch of a
US securities house embroiled in a fraud scandal pleaded
guilty yesterday to tax evasion charges, a court official
said.

Akira Setogawa, former chairman of the Tokyo branch of
Cresvale International, made the plea in Tokyo District
Court. But he entered pleas of not guilty to other fraud
charges, said the court official who spoke on condition of
anonymity.  The case centers on Cresvale's sales of
Princeton bonds that allegedly bilked eight Japanese firms
and two individuals of a combined 15.2 billion yen (HK$1.10
billion) between March 1998 and May 1999.

Cresvale is accused of knowing that the bonds were no good
and of selling them in conspiracy with Martin Armstrong, a
Princeton, New Jersey market guru.  The bonds were issued
by Princeton Economic International, based in New Jersey
and unrelated to Princeton University. Armstrong was not
named by the Tokyo prosecutors office.

In yesterday's court session, the 66-year-old Setogawa
admitted to charges that he evaded 260 million yen
(HK$18.98 million) in taxes on 530 million yen in bonuses
he received from Cresvale.  The court official refused to
provide other details, but Kyodo News agency quoted
Setogawa as telling the court that he did not realise the
money reserved for the bonds was running out and never gave
false information to the Japanese buyers of the bonds.

Both Cresvale and Princeton Economics International were
controlled by Armstrong, who has been indicted for
allegedly pouring funds from Japanese clients into risky
investments that went sour, then hiding losses. He has
pleaded innocent in the US.

In December 1999, the Tokyo branch of Cresvale
International filed for bankruptcy for reasons the branch's
then administrator said were to settle extreme chaos in the
company.  Separately, Naoko Kumagai, former vice-president
of Yakult Honsha, is on trial for allegedly falsifying
earnings results from the purchase of "Princeton notes"
issued by Cresvale. (Hong Kong iMail  21-Jun-2000)

MYCAL CORP.: To pledge store assets to slice debt
-------------------------------------------------
Mycal Corp. aims to raise 81.6 billion yen by pledging 10
stores operated by group companies as security, using the
proceeds to reduce the 1.07 trillion of interest-bearing
debt that was outstanding as of Feb. 29.

Store buildings and land assets, including outlets in Chiba
and Hyogo prefectures, will be transferred to a trust at
Yasuda Trust & Banking Co. and Mycal will sign leases to
allow the stores to continue doing business. The subject 10
stores have annual revenues of 8-10 billion yen each.

As part of the fund-raising process, a special-purpose
company set up in the Cayman Islands to issue a variety of
bonds backed by the beneficiary rights of the trust. Terms
were set Monday for commercial-mortgage-backed securities
to be underwritten by BNP Paribas Securities' Tokyo branch.

NIHON BUILDING PROJECT CO.: Files for court protection
------------------------------------------------------
A Japanese property developer said Tuesday it had filed for
preventive court protection with debts totalling 560
billion yen (5.3 billion dollars).

Nihon Building Project Co. Ltd. lodged an application with
the Tokyo District Court last Thursday, an official said,
under new legislation allowing firms to get early
protection if their financial standing is endangered.
The new law, which took effect in April, was designed to
speed up the process of corporate rehabilitation in Japan's
sluggish economy.

Nihon Building's failure was first revealed earlier Tuesday
by Teikoku Databank Ltd., a private research firm which
monitors bankruptcies in Japan.  Set up in 1969, Nihon
Building started life as an adviser to construction
projects.  But it expanded from managing buildings to
running golf clubs, hotels and restaurants during Japan's
speculative investment boom of the late 1980s.

After the "bubble economy" collapsed, the company's
earnings plummeted and its main creditors, the Long-Term
Credit Bank of Japan Ltd. (LTCB) and Nippon Credit Bank
Ltd. (NCB), went under.

"Our business environment deteriorated quickly after the
collapse of the bubble economy," said the Nihon Building
official, who declined to be named.  "And we suffered a
severe credit crunch as both LTCB and NCB collapsed."

LTCB and NCB were temporarily nationalized after they
collapsed in late 1998. "The capital flow has stopped since
the nationalization of LTCB and NCB. Other smaller
financial institutions followed suit, refusing to lend us
money," said the official.

LTCB was reborn as Shinsei Bank on June 5 as the first
Japanese lender under outright foreign ownership,
controlled by a syndicate led by investment group
Ripplewood Holdings LLC of the United States. Other firms
owing money to the revived bank are also in trouble.

One major debtor, consumer credit firm Life Co. Ltd., filed
for protection from creditors last month with liabilities
of 966.3 billion yen.  Shinsei has yet to accede to a loan
waiver worth 97 billion yen requested by troubled Japanese
department store Sogo Co.

Rival NCB is set to be taken over by a consortium led by
Japanese Internet investor Softbank Corp., after the group
signed a basic agreement with the government earlier this
month.  (Agence France Presse  20-Jun-2000)

NIPPON SHEET GLASS CO.: Initiates debt-cutting program
------------------------------------------------------
Nippon Sheet Glass Co. plans to cut its total consolidated
outstanding debt by 13 percent or 26 billion yen by March
2001, dropping it to 172 billion yen.

The company plans to accomplish the debt reduction by
selling assets and applying profit realized last fiscal
year from the sale of securities. Nippon aims to repay 16
billion yen in long- and short-term loans and redeem 10
billion yen in corporate bonds. As of the end of March, it
had 63.8 billion yen in cash on hand in part from the sale
of stock in a U.S. subsidiary. That compares with 33.1
billion yen in liquidity the year prior.  The company also
plans to sell this year its headquarters building in Osaka.

Nippon Sheet Glass added 15 subsidiaries to its
consolidated group balance sheet last fiscal year,
increasing its debt burden by 12.5 billion yen.

SOGO CO.: To sell flagship store
--------------------------------
Ailing Japanese retailer Sogo said yesterday it was in
talks with rival Mitsukoshi to sell its flagship department
store in the western city of Osaka.

Crippled by debts of 1.7 billion yen (US$16.2 billion)
amassed through two decades of heady expansion, Sogo said
it had to sell the store in Japan's second biggest city as
part of its restructuring drive.

"Currently we are in talks with a few companies including
Mitsukoshi over selling the Osaka store," said Sogo
spokesman Haruhiko Kitagawa.  "We will announce the deal as
soon as possible. That is all I can say at this moment."

The price tag for the Sogo Osaka store is estimated at '30
billion and Sogo is expected to strike a deal as early as
next month with Mitsukoshi, rather than another rival
Daimaru, the Nihon Keizai Shimbun said.  Mitsukoshi has a
store in Osaka but it was damaged by the massive 1995
earthquake in neighboring Kobe, which claimed 6,432 lives.

"We are considering having a new Mitsukoshi store in
Osaka," said Ichiro Fujii, a spokesman for the luxury
retailer.  "We hope to set it up in a better location
because the current store sits in a business district."

The purchase of the Sogo Osaka, located in a prime shopping
district, would save Mitsukoshi construction costs, reports
said.  Sogo said in April it planned to close or sell seven
Japanese stores out of 27, and that it would seek buyers
for another 12 stores across Asia.

The retailer has asked 73 financial institutions including
Shinsei Bank and Industrial Bank of Japan to forgive debts
totalling 639.0 billion yen.  Shinsei Bank, formerly the
Long-Term Credit Bank of Japan (LTCB), will ask the
government to take over 200 billion yen in loans it made to
Sogo, the Nihon Keizai Shimbun also reported.

The Sogo loan takeover would be part of an agreement
between the government and the consortium, under which
Shinsei Bank can demand the state-run Deposit Insurance buy
its loans at book value if they fall by 20 percent.
(Business Day  22-Jun-2000)


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

DAEWOO GROUP: Magazine exposes secret account
---------------------------------------------
The Daewoo Group illegally operated a secret account of
over US$7.5 billion at a financial market in London,
according to the Weekly News Magazine.

It claimed millions of dollars had been used without proper
authorisation and no records were kept on how the money was
spent. Only Daewoo Group founder Kim Woo-choong and his
close aides knew about the secret account, named British
Finance Centre (BFC), the magazine said. The funds were
raised through surpluses from local financial institutions,
headquarters and overseas corporations and profits from
vehicle sales.

Creditors said transactions through the BFC were not listed
and violated foreign exchange and outside auditor laws,
pointing to the possibility that the money was a slush
fund. (Asia Pulse  21-Jun-2000)


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

LANDMARKS BHD: To divest hotel assets to repay debts
----------------------------------------------------
Hotelier Landmarks Bhd has until the end of this year to
divest either its 27 per cent stake in Shangri-la Hotels
(Malaysia) Bhd (SHMB) or its other hotels and resorts, plus
a stake in Sungai Wang Plaza to repay part of its whopping
RM650 million debts.

Its group managing director M.A. Halim Ahmad said Landmarks
expects to settle as much as RM400 million of its total
debts this year by divesting its hotel properties.
Landmarks is in the process of rescheduling about RM650
million in debts over the next two years through the
disposal of shares in SHMB. Halim added that the assets
that may be up for sale include the Teluk Datai Resort and
The Andaman in Langkawi and a few luxury hotels.

However, finding a buyer for its stake in SHMB may be a
problem because Landmarks does not have management control
in the hotel group. Kuok Brothers Sdn Bhd, the majority
shareholder in SHMB, manages the hotel group.

Halim said although Landmarks is hoping to get between
RM200 million and RM250 million for its SHMB, it is not too
optimistic due to the current bearish sentiment. Landmarks
had earlier failed to come to a deal with two foreign
parties on the sale of the stake in SHMB over disagreement
on the pricing.

He added that should the company failed to sell its stake
in SHMB, it might have to give up its other resort, The
Andaman, as well as selling a substantial stake in the
group's crown jewel, Sungai Wang Plaza Sdn Bhd, to cough up
the RM400 million.

"We may have to reschedule. again, if we cannot sell
Shangri-la. Or we may have to look for buyers for Andaman.
But we will not be selling all of Sungai Wang," he said at
the group's annual general meeting today.

Landmarks is more optimistic about receiving over RM200
million for The Datai resort, which contributed about RM60
million to the group's turnover last year. Landmarks is
currently in advanced negotiations with two foreign parties
to dispose of the resort.

With the divestment of the properties, Landmarks will look
towards its healthcare services as its income earner, which
is forecast to contribute about 40 per cent to the group's
turnover by the year 2003.  The group registered a pre-tax
loss of RM115 million for the financial year ended December
31, 1999 - the third consecutive year of losses.

In its diversification into the healthcare sector,
Landmarks has acquired two yet-to-be-completed hospitals in
Mont Kiara and Bandar Baru Klang in Selangor. It is eyeing
a third hospital, which is already up and running, in
Penang.

The group recently bought a 50 per cent plus one share
interest in the Mont Kiara Specialist Centre from
Consolidated Bond (M) Sdn Bhd - which is owned by 60
doctors - for between RM8 million and RM9 million. The 300-
bed specialist centre is expected to cost about RM100
million.

In March, Landmarks announced that it signed a Memorandum
of Understanding to acquire the 300-bed Bandar Baru Klang
Medical Centre in Klang for RM120 million. The deal is to
be finalised by the end of the year.  The group also has
interest in a healthcare services company in Australia
through Australian Hospital Care Ltd, which was acquired in
1997. (The Edge  21-Jun-2000)

TIME ENGINEERING: May be less creditor support than thought
-----------------------------------------------------------
Creditors are being coy about backing Time Engineering
Bhd's debt restructuring proposal that is up for approval
on July 12.  Their common refrain is that they have heard
that "other" creditors have decided to support the plan,
but they didn't want to state their own stand.

And they were unable to identify these "other" creditors.
The creditors who were contacted were reacting to a Reuters
report claiming that "most" creditors have thrown their
support behind the debt-restruturing plan. It quoted a
source, which it described as being close to the
negotiations with the creditors, as saying:  "There is
support from most of their creditors for the scheme,
both from the bankers and trade creditors."

Time's original creditors meeting was set for June 8 but
was subsequently rescheduled to July 12 as Khazanah
Nasional Bhd's due diligence on Time had not been
completed.  Khazanah is proposing to acquire 30 per cent of
Time's subsidiary Time dotCom Bhd and is expected to
finalise its valuation and due diligence on the company
soon.

"I can confirm that market intelligence that I have
received seems to indicate that most of Time's creditors
are in favour of its debt-restructuring proposal," said a
creditor who declined to be named.

He also said that his corporation has decided on its vote
but declined to elaborate.  Another creditor said that she
had spoken to other creditors who had also indicated that
they will vote for the restructuring exercise but she
added:  "I can't take their word for it. We haven't gone to
the meeting yet, so we really don't know."

Responding to the Reuters report, she said that due to the
shape of the restructuring scheme, 75 per cent approval was
needed from among the creditors to push through the debt-
restructuring proposal for each of the companies under
Time. "But unanimous approval is needed for the whole debt
restructuring to go through for the whole group, so
majority approval may not be enough," she said.

Time shares fell 31 sen to RM2.87 yesterday. Its holding
company Renong Bhd lost 24 sen to RM1.67.  Associate
company United Engineers (Malaysia) Bhd was lower by 75 sen
at RM7.55. (The New Straits Times  20-Jun-2000)


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

CARLOS PUBLISHING CO.: Tabloid publisher closed down
----------------------------------------------------
Carlos Publishing Company was forced to close down its
operations today after failing to pay huge debts in its
rented building along Port area Manila.

Carlos Publishing is the publisher of newspaper tabloids'
Remate, Remate Tonight and Bulldog and allegedly owned by a
congressman from Surigao del Norte province.  Reports show
the publishing company's debts from building rentals in the
last two years have reached about 4.4 million pesos.

The sheriff assigned to close down the company confiscated
its publishing equipments, computers, electic fans,
delivery trucks and other office equipments.  It can be
recalled employees of the said publishing company staged a
strike because of the nonpayment of salaries of employees.
(ABS/CBN News Channel  21-Jun-2000)

PHILIPINE NATIONAL BANK: Gov't stake sale back on
-------------------------------------------------
The Philippines Government plans to put its 30 per cent
stake in the Philippine National Bank on the auction block
again, possibly in July or August, Finance Secretary Mr
Jose Pardo said over the weekend.

"The auction will be in 30 to 45 days from now," he said.

Earlier this month, the auction for a stake of nearly 80
per cent in PNB - comprising the Government's 30 per cent
stake, a 46 per cent interest controlled by tycoon Mr Lucio
Tan and a 3.8 per cent stake held by a PNB pension fund -
failed after one of two bidders were unable to find a bank
partner.

Under the bidding rules, the auction was cancelled and a
new round implemented.  The new auction will be only for
the Government's stake, however, and not the larger bundled
one.  The floor price for the bidding is reportedly 140
pesos a share - an ambitious target, say some analysts,
given PNB's fragile financial health; it closed at 59 pesos
yesterday.

A June deadline for PNB's full privatisation was recently
extended for one year by the World Bank, which has made the
sale a condition for the country to tap a large loan.
It's not clear whether the second bidding round will go
through before Mr Tan's planned 10 billion peso ($389
million) rights offering next month to raise fresh capital
for the bank. Another 10 billion peso loan is set to be
offered early next year.

"We are hoping that we can sell our stake before the
capital call," Mr Pardo said.

Meanwhile, Philippines Congressmen have agreed in principle
to adopt the Senate's version of the long-awaited Power
Reform Bill, which would defer the planned privatisation of
State-owned National Power Corp. (Sydney Morning Herald
20-Jun-2000)

UNIWIDE GROUP: Opposes motion for plan modification
---------------------------------------------------
Debt-stricken retailer and property developer Uniwide Group
of Companies stands firmly by its rehabilitation plan as it
asked the Securities and Exchange Commission (SEC) to junk
a creditor bank's motion for the modification of the SEC-
approved rehab plan.

In an opposition filed before the corporate court
yesterday, the Gow-owned group sought the denial of an
earlier motion filed by creditor Allied Banking Corp.
calling for the alteration of the amended rehab plan.
Uniwide said the contentions of Allied Bank are "devoid of
merit and do not warrant the relief prayed."

Allied Bank earlier alleged that the provision under the
rehab plan, which compels the bank to convert its security
to shares of stock in a Special Purpose Corp. (SPC),
"impairs its rights as a secured creditor as it is left to
forego its security in lieu of mere condominium shares."

For its part, Uniwide said Allied Bank's accusations are
based on the "erroneous belief that the shares in the SPC
would serve as security for the obligations of (Uniwide)."
Uniwide pointed out that the shares in the SPC, which
Allied Bank will receive in addition to the cash payment,
is not a mere replacement of security but payment of the
obligation.

"Considering that the mortgage credit of (Allied Bank) will
be paid by way of cash and shares of stocks in the SPC, its
mortgage lien over the Metromall will necessarily be
extinguished...the bank cannot claim that it is deprived of
its property rights," Uniwide said.

Moreover, Uniwide argued that contrary to Allied Bank's
allegations, the creation of the SPC is indeed consistent
with the objectives of the rehabilitation process.

"The creation of the SPC is for the purpose of making the
operations of the Metromall more profitable, and, as a
result, allowing the Uniwide Group to continue its
operations. It cannot be said that the creation of the SPC
is inconsistent with the purposes of rehabilitation,"
Uniwide said.

Meanwhile, as an alternative, the Uniwide creditor earlier
proposed the deletion of the provision on the creation of
an SPC composed of Philippine National Bank, Bank of the
Philippine Islands, Rizal Commercial Banking Corp, Asian
Bank and East West Bank, with the Metromall development as
the only asset. (Business World  21-Jun-2000)

URBAN BANK: Suffered 83% profit plunge before closure
-----------------------------------------------------
Closed Urban Bank, Inc. and its subsidiaries posted a
measly 3.775 million Philippine pesos (PhP) (US$88,500 at
PhP42.649:US$1)in net income for the first quarter,
plunging 82.65% from PhP21.76 million in the same period
last year.

This was according to its unaudited consolidated statement
of income, a copy of which was obtained by BusinessWorld.
As of end-March, its consolidated statements of condition
reflected a capital of PhP2.436 billion. Total assets stood
at PhP11.688 billion while total liabilities amounted to
PhP9.252 billion. Of the total liabilities, deposits
accounted for PhP7.46 billion, slightly lower than the end-
1999 level of PhP7.814 billion.

The financial statements were prepared by the management of
Urban Bank prior to the takeover of the Philippine Deposit
Insurance Corp. (PDIC) last April 26. Upon PDIC's takeover,
adjustments were made on the bank's financial record. In
its report, Urban Bank said the 1997 regional financial
crisis forced many local businesses to close. The bank,
however, may not have foreseen its closure when it stated
in the report:

"Rising to the challenge, Urban Bank distinguished itself
by capitalizing on opportunities and maximizing its
established niches. As a result, (the) bank was forged into
a leaner, more focused organization, poised more than ever
to withstand the difficulties buffeting the industry and
more importantly, succeed in the coming future."

Despite the optimism, however, the bank and its units
suffered a net earnings drop due to the 23.75% and 23.76%
decline in interest income and other incomes, respectively.
Interest income was PhP216.891 million, down from
PhP284.454 million year-on-year, while other income stood
at PhP28.517 million from PhP37.405 million.

Falling interest income was largely attributed to the
decrease in interest income from loans, which stood at
PhP172.262 million as of end-March. In the first quarter
last year, the figure was PhP251.758 million. Interest
income from loans likewise dropped to PhP1.349 million from
PhP8.315 million. (Business World  20-Jun-2000)

VICTORIAS MILLING CO.: Two more banks reject VMC plan
-----------------------------------------------------
The management of debt-saddled Victorias Milling Co. (VMC)
may have to give up its version of the firm's
rehabilitation plan as three banks recently asked the
corporate regulator to dismiss the same and instead,
implement a plan prepared by the sugar miller's management
committee (mancom).

In separate motions filed with the Securities and Exchange
Commission (SEC), VMC creditors Security Bank and East West
Banking Corp. (EWBC) sought the approval of the alternative
rehabilitation plan (ARP) drafted by the SEC-appointed
mancom which calls for the infusion of over 300 million
Philippine pesos (PhP) (US$7.03 million at PhP42.671:US$1)
in fresh capital.

EWBC pointed out that the ARP prepared by the management
should be dismissed since it is the mancom that has the
legal authority to draft the plan.  Moreover, the bank
blamed VMC stockholders for the "failure" of the original
rehabilitation plan.

"The only conceivable reason (for the failure of the
original plan) is the delay caused by representatives of
stockholders who unreasonably demanded to avail of their
pre-emptive rights over the new shares to be issued in
order to allow a new investor to provide the needed cash
infusion," EWBC said.

To recall, the SEC-appointed mancom earlier granted VMC
shareholders the option to subscribe to PhP567 million
($13.28 million) worth of new shares through a stock rights
offer. The firm's shareholders, however, did not meet the
deadline and the subsequent bidding of the said shares to a
third party also failed months after. Equitable PCI Bank
also gave its conditional approval to the mancom-prepared
ARP.

The creditor bank stressed that its approval is dependent
on a number of conditions, among them is the installation
of a professional management team within 120 days from the
date of the ARP approval. Equitable said the implementation
of the ARP would also depend on the infusion of the PhP300
million additional cash within a 120-day period, as
provided for in the mancom-prepared rehabilitation plan.

"Should the two above-listed qualifications not be met,
within the said 120 day period, then...any further
rehabilitation efforts will prove fruitless as the previous
attempts, and therefore, no further attempt to rehabilitate
VMC should be made and the company listed instead be
dissloved," Equitable said. (Business World  21-Jun-2000)

WESTMONT INVESTMENT CORP.: SEC tightens noose on execs
------------------------------------------------------
In preparation for the filing of criminal charges against
officials of Westmont Investment Corp. (Wincorp), the
Securities and Exchange Commission (SEC) has written 22
listed corporations to confirm reports that they have
borrowed money from the failed investment house.

The Prosecution and Enforcement Department, the agency
tasked to investigate Wincorp's activities, said it
received reports that the investment firm had lent money to
22 listed corporations which were issued a confirmation
advice.  The PED is currently studying whether the
confirmation advice is a form of security that needs to be
registered with the SEC before it could be issued.

The commission en banc said that should the involved
activity turn out to be a dud, the case should immediately
be filed with the Department of Justice for the institution
of criminal sanctions against the responsible individuals.
Following complaints from various investors, the SEC had
issued a cease and desist order against Wincorp for
breaching the rules on short-term commercial papers by
failing to register with the corporate watchdog CPs
issued to about 2,200 investors, most of whom are Binondo
and Cebu-based Chinese Filipino individuals.

Under the rules, debt instruments are exempt from
registration if they are issued to not more than 10 lenders
and the total outstanding amount of such securities does
not exceed P5 million.  Findings showed that Wincorp issued
an average of P7 billion worth of CPs per month and the
debt instruments were not held by Wincorp up to their
maturity in violation of the rules governing CPs.

The existing rules provide that all debt instruments shall
be held on to maturity and shall neither be negotiated nor
assigned to any one other than the central bank and the
Development Bank of the Philippines.  The CDO was to
prevent Wincorp from further soliciting investments from
the public or dealing with loan agreements and promissory
notes. (The Manila Times  19-Jun-2000)


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

ELEC.GENERATING AUTH.OF THAILAND: To borrow to reduce debt
METRO. ELEC.AUTHORITY: To borrow to reduce debt
METRO. WATERWORKS AUTHORITY: To borrow to reduce debt
PROVINCIAL ELEC.AUTHORITY: To borrow to reduce debt
STATE RAILWAY OF THAILAND: To borrow to reduce debt
----------------------------------------------------------
Five state enterprises yesterday received approval from the
cabinet to borrow a total of 17 billion baht from the local
market to help refinance foreign debt.

The agencies are the State Railway of Thailand, the
Electricity Generating Authority of Thailand, Metropolitan
Electricity Authority, Metropolitan Waterworks Authority
and Provincial Electricity Authority.  The five will issue
a total of 17.009 billion baht in debt before the end of
the fiscal year on Sept 30. The Finance Ministry will
determine whether they will be guaranteed by the
government.

The SRT was approved for two borrowing projects worth 669
million baht, the MEA one project worth 2.2 billion and
Egat five projects worth 6.16 billion. The MWA received
approval for two projects worth 1.6 billion while the PEA
was approved for seven projects worth 6.38 billion.

Still to be decided is whether the debt would be issued in
the form of bonds or loans from commercial banks or the
Government Savings Bank. (Bangkok Post  21-Jun-2000)

PARIBAS EQUITIES: CSFB buys dormant firm
----------------------------------------
Credit Suisse First Boston (CSFB) yesterday announced it
had acquired Paribas Equities (Thailand) as part of a
strategy to expand into investment banking in the Thai
market.

CSFB purchased dormant securities company Paribas Equities
which has a full license to operate as a securities
brokerage, dealer, underwriter and investment advisory
service.  CSFB said the new entity will be named CSFB
Securities (Thailand) and expects to have it fully
functional by the fourth quarter.

"CSFB has been pursuing an expansion plan in Asia for
several years now, and we feel the time is right to make a
major step with our equity business," said Stephen
Stonefield, CSFB Chairman for the Pacific Region. "We are
aiming for comprehensive coverage of the Southeast Asian
market, and Thailand is a key part of this strategy."

CSFB, however, did not disclose how much it paid for the
acquisition.  Mark Fuchs is currently heading up equities
operations in Thailand and CSFB has recently hired several
key staff in its sales and research efforts.

CSFB operates 56 offices in 37 countries with over 15,000
staff. It is one of the world's largest securities firms in
terms of financial resources, with approximately US$9.8
billion in revenue in 1999, $7.8 billion in equity and $275
billion in assets as of December 31, 1999. (Business Day
21-Jun-2000)

THAI PETROCHEM.INDUS.: Expects new plan by end of July
------------------------------------------------------
Effective Planner Ltd managing director Anthony J Norman
said he will meet Thai Petrochemical Industry Plc creditors
on July 7 to discuss the ongoing TPI debt restructuring
plan.

"The forecast of cashflow generated from operations will be
finalised in the next two weeks. On July 7 we will have
intensive dialogue with the creditors on how the
restructuring TPI should be conducted," he said.

He said he is confidenct the plan will be submitted to the
Official Receiver July 28.  (AFX News Limited  20-Jun-2000)

THAI PETROCHEM.INDUS.: Refinery closure imminent
------------------------------------------------
Effective Planners, one of Thai Petrochemical Industries'
planners, has decided to close the company's first oil
refinery and downsize its Rayong jetty operation.

The measures are seen as the first important steps in
restructuring Southeast Asia's largest petrochemical
company.  TPI could possibly sell the dormant refinery, but
Effective Planners' managing director Anthony Norman,
declined to speculate about this. He did, however, say that
with September's commissioning of the company's second oil
refinery, combined production of both plants would create
over-capacity, making it necessary to suspend operations at
the first.

The second refinery would be completed according to
schedule, because Effective Planners had approved a capital
injection of US$10 million (Bt390.5 million) for its
construction.  It will be capable of producing 150,000
barrels a day, compared with 65,000 barrels at TPI's
current operation.

With rising oil prices and sluggish demand, Norman said it
would not be viable to operate the first refinery when a
second was coming online. However, shutting down the first
refinery would be costly, he said.  TPI chief executive
Prachai Leopairatana said the first refinery could be
closed within a couple of months. But a director of
Effective Planners, Barry Murphy, said the first refinery
could resume operation once oil demand picked up over the
next few years.  The new refinery's capacity should suffice
in the current economic climate, said Murphy.

"Creditors of TPI need to approve the suspension, as part
of the company's debt restructuring plan, before we can
shut the first refinery down," he said.

Meanwhile, Effective Planners has also decided to downsize
the company's jetty operation in Rayong province, because
oil is no longer shipped via there.  As part of its
restructure, Norman said TPI would set aside 2.5 per cent
of its assets, or $80 million, annually for general
operations and new investment.

He said TPI would try to pick sound projects that generated
good incomes.  Sippanondha Ketudat, chairman of Effective
Planners, said TPI's rehabilitation plan would be a win-win
situation for both debtors and creditors.  Because the
planner wanted TPI to remain a leader in the integrated
petrochemical business, it would not dispose of any assets
essential to the core business.

Effective Planners intends to send a final draft of TPI's
rehabilitation plan to the creditors' steering committee by
July 7.  After creditors' approval, the company would
forward the rehabilitation plan to the Legal Execution
Department for final approval by July 28.

Norman said the rehabilitation plan retained the spirit of
the master plan, which was drafted in February 1999.
It included debt-for-equity swaps, disposal of non-core
assets, and debt rescheduling, he said.  Currently, the
Effective Planners is managing TPI's cashflow - according
to its forecast revenue for the next five years - so it has
the capacity to service loans totalling US$3.5 billion.
If the plan fails to meet repayment obligations, the
company will revise its plan. (The Nation  21-Jun-2000)

THAI PETROCHEM.INDUS.: Debt-laden firm must raise $750M
-------------------------------------------------------
A new earnings forecast for debt-stricken Thai
Petrochemical Industry PCL indicates it will need to raise
about $750 million in new capital in the next five years,
some of it from sales of noncore assets.

TPI, Thailand's biggest corporate defaulter, with
outstanding debt of $3.5 billion, can expect to generate a
total of about $2.1 billion in operating earnings up to the
end of 2004, according to the forecast prepared by
Effective Planner Ltd., a subsidiary of Australian debt-
workout specialists Ferrier Hodgson.

Creditors chose Effective Planner to take control of TPI
and to draw up a plan to clear its outstanding debts of
$3.5 billion after 2 1/2 years of negotiations with TPI
management on debt restructuring collapsed in January.
Effective Planner expects to complete the plan by the end
of July, said its managing director, Anthony Norman.

After a two-month review, Effective Planner projects TPI
operations will earn $280 million this year and $260
million in 2001, $420 million in 2002, rising to $680
million in 2003 before dropping back to $510 million in
2004.  "I interpret that as encouraging," Mr. Norman said.

The projected earnings are broadly in line with
expectations contained in an initial debt-restructuring
deal agreed upon by creditors and TPI in early 1999,
and they dispel concerns that a subsequent rise in crude-
oil feedstock prices might force the company to try to
raise more capital from external sources.

The previous deal required TPI to reduce its debts by $1.5
billion in the next five years, and on the basis of the new
cash forecasts, a new plan is expected to be similar. Mr.
Norman said that under the previous plan, half of the debt
payment would come from operating earnings and the balance
would come from new capital raised from investors and from
the sale of noncore assets. He indicated that the new plan
would likely be similar.

Completion of the cash flow forecasts clears the way for
Effective Planner and TPI's management, led by its founder
and principal shareholder, Prachai Leophairatana, to start
negotiating over how much capital the company can raise
from investors and how much from noncore asset sales.
Bitter disagreement between Mr. Prachai and his creditors
on these issues precipitated the final breakdown in their
previous negotiations.

Mr. Prachai had hoped to avoid asset sales by raising $1
billion in new capital from mainly institutional investors,
but people familiar with the situation believe sharp falls
in Thailand's equity market this year cast doubt on the
feasibility of attracting such funds, ensuring the company
will need to sell some assets.

Effective Planner has received "more than a dozen"
inquiries from investors, Mr. Norman said, but is still
studying with TPI management which assets are essential to
maintain the economic benefits of integration.  Since
taking over TPI, Effective Planner has given it the go-
ahead to complete a new 150,000 barrels-a-day refinery at a
cost of more than $10 million, said Barry Murphy, a board
member.

The new refinery will come into production in September,
but TPI will also close its existing 65,000 barrels-a-
day refinery to avoid oversupply of product, he said.
(The Asian Wall Street Journal  21-Jun-2000)


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