TCRAP_Public/000627.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

             Tuesday, June 27, 2000, Vol. 3, No. 124


* A U S T R A L I A *

EMAIL LTD.: Smorgon extends offer

* C H I N A  &  H O N G  K O N G *

BIO-HEAT MARKETING LTD: Facing winding up petition
COUNTRY TACT DEVELOPMENT LTD: Facing winding up petition
EXCEL PROFIT (HK)LTD: Facing winding up petition
HENON DEVELOPMENT LTD: Facing winding up petition
JOYCE BOUTIQUE: Wheelock confirms Joyce tie-up

* I N D O N E S I A *

PT BANK NEGARA INDO.: Expecting net loss this year
PT BARITO PACIFIC TIMBER: Debt settlement this year
PT DHARMALA SAKTI SEJAHTERA: Appeals bankruptcy declaration
PT OMETRACO CORP.: IBRA loses bankruptcy suit against it
PT SEMEN CIBINONG: HFG to inject capital, take over

* J A P A N *

HITACHI SEIKI CO.: Posts group net loss
MAKINO MILLING MACHINE CO.: Posts group net loss
MORI SEIKI CO.: Posts group net loss
OKUMA CORP.: Posts group net loss
RIKISHAMAN: Daiei to liquidate it
SOGO CO.: DIC's Matsuda hints at waiving Sogo loans
SOGO CO.: To sell Gama stake but retain KL Sogo
SONY CORP.: Expected to post huge loss
TOKAI CORP.: To complete restructuring by October
TOSHIBA MACHINE CO.: Posts group net loss
TSUGAMI CORP.: Posts group net loss

* K O R E A *

DAEWOO MOTORS: 3 bids received for it
DAEWOO MOTORS: Hyundai-DaimlerChrysler affirm joint venture
HYUNDAI MOTOR CO.: Daimler-Chrysler taking a stake
SEOUL BANK: Refusing assistance to Central Banking

* M A L A Y S I A *

CHASE PERDANA: Finalises debt revamp plan
LION GROUP: Finalizing restructuring scheme
MANCON BHD: To propose restructure scheme soon

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

ASB GROUP: Seeks another 60-day immunity from claims
METRO PACIFIC: Won't sell its PLDT shares -- yet
REYNOLDS PHILS: Starts debt talks;seeks 10-yr grace period
URBAN BANK: PDIC files first case vs former execs
VICTORIAS MILLING CORP.: Another creditor added to list

* T H A I L A N D *

SIAM CITY BANK: Newbridge vows Bt-5 billion commitment


EMAIL LTD.: Smorgon extends offer
The Smorgon Steel Group yesterday extended its takeover
offer for Email Ltd by two weeks, blaming delays in the
dispatch of Email's target statement.  The offer was now
valid until Monday, July 17, Smorgon Distribution Ltd said.

Smorgon said the target statement, which outlines Email's
view of the takeover offer, also contained a number of
"surprising and material disclosures."

"These include disclosure for the first time of the
existence of licence termination provisions and a right of
first refusal relating to the Major Appliance business,"
Smorgon said.

Email's target statement revealed Swedish electronics group
Electrolux had first right of approval to buy Email's
appliances arm.  Smorgon intends to spin off Email's
whitegoods business if its takeover bid is successful.
Smorgon has offered $2.89 a share, consisting of $1.85 cash
and a converting appliance preference share with a $1.04
face value.  The CAPs are intended to convert into shares
in a new listed company to hold Email's appliance business.
(The Border Mail  24-Jun-2000)

C H I N A  &  H O N G  K O N G

BIO-HEAT MARKETING LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for August 9 on the petition of
Standard Chartered Bank for the winding up of Bio-Heat
Marketing Limited. A notice of legal appearance must be
filed on or before August 8.

COUNTRY TACT DEVELOPMENT LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for August 2 on the petition of Sin
Hua Bank Limited for the winding up of Country Tact
Development Limited. A notice of legal appearance must be
filed on or before August 1.

EXCEL PROFIT (HK)LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for August 9 on the petition of
Cheung Yau Kam for the winding up of Excel Profit (Hong
Kong)Limited. A notice of legal appearance must be filed on
or before August 8.

HENON DEVELOPMENT LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for August 2 on the petition of The
China State Bank, Limited for the winding up of Henon
Development Limited. A notice of legal appearance must be
filed on or before August 1.

JOYCE BOUTIQUE: Wheelock confirms Joyce tie-up
Wheelock and Co has confirmed it is to take over troubled
Joyce Boutique by investing HK$205 million for a
controlling stake.

It follows the collapse last month of a takeover bid by
Strategic Capital Group (SCG) and ends months of
speculation about the future of the upmarket retailer.
Joyce said the proceeds would be used to expand its
existing business and move into online shopping and e-
commerce operations.

Wheelock, whose interests already include the upmarket
store group Lane Crawford, said the move gave them a market
share of the franchised high to mid-fashion brand sector
that was unmatched in the region.  Joyce Boutique was
suspended from trading on June 19 after the company said
there might soon be a new controlling stakeholder.
Trading will resume today.

SCG's proposed takeover of Joyce fell through in May after
the boutique lost its franchise with Italian fashion house
Armani, although Joyce blamed SCG for the talks' collapse.
In a joint announcement issued by Joyce and Wheelock
yesterday, Wheelock said it would subscribe to 820 million
new shares at 25 HK cents each to give it a 51.3 per cent
stake of the enlarged company.

The issue price of 25 HK cents represents a premium of
about 8.7 per cent to 23 HK cents Joyce traded at before
suspension.  After the completion of the deal, the founding
Ma family's shareholdings will be reduced to 23 per cent
from the present 47.2 per cent.

Wheelock would be able to name up to seven directors in the
13-member Joyce board.  But the Ma family would maintain
full management autonomy, the statement said.  Walter Ma
King-wah will remain as chairman, Joyce Ma will remain as
chief executive and Adrienne Ma will remain as managing

"I see much synergy arising from Joyce being within
Wheelock's current portfolio of businesses, including
opportunities arising within the Wharf property portfolio,"
Wheelock chairman Gonzaga Li Wei-jen said.

Wheelock said its retail interests, which extend into the
mainland, would be broadened to Taiwan where Joyce provides
it with a presence. (South China Morning Post  26-Jun-2000)


PT BANK NEGARA INDO.: Expecting net loss this year
PT Bank Negara Indonesia is expecting a net loss of 1.4
trln rupiah in 2000 largely due to net interest losses,
company president Saefuddin Hasan said.

He said the company will be able to book profits starting
from 2001 after its full recapitalisation by the
government.  He added as mentioned in the management
contract between BNI and the government, BNI is expected to
book a net profit of 1.9 trln rupiah in 2001 and 2.6 trln
in 2002.

"After recapitalisation, BNI will be able to generate
income from operations because its non-performing loans
(will have) turned into assets," he said.

Under the recapitalisation program, the receiver bank
transfers (BNI's) non-performing loans to the Indonesian
Bank Restructuring Agency (IBRA) before the government
injects new capital in the form of recapitalisation bonds.
He said the company is expected to post a loss this year
because it still recorded a "negative spread" or net
interest loss in the first six months before the
recapitalisation program was implemented.  (AFX News
Limited  26-Jun-2000)

PT BARITO PACIFIC TIMBER: Debt settlement this year
Indonesia's largest timber company PT Barito Pacific Timber
said yesterday it was hoping to reach agreement with
creditors on restructuring debts of US$378.7 million and
Rp400 billion this year. (The Indonesian Observer  24-Jun-

PT DHARMALA SAKTI SEJAHTERA: Appeals bankruptcy declaration
PT Dharmala Sakti Sejahtera said it has filed an appeal to
the commercial court over the court's decision to declare
the company bankrupt.

The company said it filed the appeal, alleging that two of
its creditors -- the Indonesian Bank Restructuring Agency
and Manulife Indonesia -- had purposely caused the company
to be declared bankrupt.  Dharmala Sakti Sejahtera was
declared bankrupt by its creditors following their
rejection of its debt restructuring proposal at a
creditors' meeting.

The company said there was evidence that IBRA and Manulife
Indonesia had influenced other creditors to reject
Dharmala's debt restructuring proposal.  It alleged that
IBRA and Manulife Indonesia sent letters to other
Dharmala creditors encouraging them to reject the company's
debt proposal.  (AFX News Limited  26-Jun-2000)

PT OMETRACO CORP.: IBRA loses bankruptcy suit against it
Indonesia's Supreme Court has upheld a lower court ruling
dismissing a bankruptcy appeal filed by the Indonesian Bank
Restructuring Agency (IBRA) against PT Ometraco Corporation
Tbk, in the latest setback for the bank agency.

In a ruling dated June 9, but which was only released
yesterday, the Supreme Court said Ometraco Corp had already
declared itself bankrupt and could not be declared bankrupt
a second time.  Ometraco, a unit of Gajah Tunggal Group,
had declared bankruptcy in early April and registered a
self-liquidation notice with the South Jakarta District

It is now in liquidation, a process being administered by a
private receiver appointed by the company's shareholders.
Ometraco owes IBRA US$5.03 million (S$8.7 million) and 4.52
billion rupiah (S$904,000). Its total outstanding debts
stand at US$53.18 million.  IBRA had sought a bankruptcy
ruling against the firm so it could appoint a receiver of
its choice.  An IBRA official told Reuters it would ask for
a review of the case.

"We think the decision lacks legal basis," IBRA lawyer
Benny Harman said.

The decision marks another lost case for Ibra in its
efforts to deal with recalcitrant debtors through the
nation's courts.  The country's bankruptcy law, introduced
in 1998 in a bid to end deadlock between debtors and
creditors, has been ineffective in practice. Hardly any
bankruptcy suits have been successful and several court
decisions have been widely criticised by legal experts.

IBRA said in May it would propose to Parliament a new draft
bill which would give the agency more power to recover debt
and to take control of troubled companies.  The
International Monetary Fund (IMF), which has agreed to a
US$5 billion three-year loan package for Indonesia, has
demanded action to clean up corruption in the courts and to
restructure private sector debt.

"The imperative at this stage of the programme for
Indonesia is to drive asset recovery and restructuring.
This is the heart of the programme going forward and has
been the principal aspect of our discussions," IMF
Asia-Pacific deputy director Anoop Singh told Reuters in an
interview yesterday.

IBRA has so far filed bankruptcy suits with the commercial
court against five debtors but none has been won. They include trading firm
PT Tirtamas Comexindo,
controlled by businessman Hashim Djojohadikumsumo, a relative of
former president Suharto. IBRA's bankruptcy suit against Tirtamas was
postponed as the company was
given until September to repay its debts, totalling 70 billion rupiah and
US$95.7 million.

Another bankruptcy suit against pulp and paper firm PT Westkalindo Pulp and
Paper Mill was rejected by
the Commercial Court, and Ibra has appealed. A suit against palm oil
producer PT Sumi Asih was rejected
by the Supreme
Court earlier this month. The court said the agency should have filed the
suit at a district court instead.
(Reuters, Business Times  24-Jun-2000)

PT SEMEN CIBINONG: HFG to inject capital, take over
Holderbank Finance Glaris Ltd (HFG) has agreed to inject
fresh fund into PT Semen Cibinong (JSX:SMCB) and become the
majority shareholder of the listed cement producer.

SMCB President Hashim S. Djojohadikusumo said in a
statement that the commitment by the Swiss-based company
indicated confidence in the prospects of his company.
The investment by HFG was part of the program of debt
restructuring by SMCB, a company spokesman said.
Currently HFG is the second largest shareholder of SMCB.

Hashim said the government and the majority shareholder of
SMCB had given their support to the proposal by HFG to take
over the majority shares of SMCB.  (Asia Pulse  23-Jun-


HITACHI SEIKI CO.: Posts group net loss
MAKINO MILLING MACHINE CO.: Posts group net loss
MORI SEIKI CO.: Posts group net loss
OKUMA CORP.: Posts group net loss
TOSHIBA MACHINE CO.: Posts group net loss
TSUGAMI CORP.: Posts group net loss
Six of Japan's seven leading machine tool manufacturers
recorded consolidated net losses in fiscal year 1999,
primarily due to a reduction in orders due to sluggish
spending of private-sector capital and a strong yen.

Net losses were posted at Mori Seiki Co., Hitachi Seiki
Co., Makino Milling Machine Co., Tsugami Corp., Toshiba
Machine Co. and Okuma Corp. OKK Corp. was the only firm to
produce a net profit after 2.3 billion yen attributable to
the sale of fixed assets.

Mori Seiki was the sole manufacturer to avoid posting an
operating loss. The company suffered an 87 percent decline
in operating profit while posting a 2.7 billion yen pretax
loss, mainly due to foreign exchange losses.

Meanwhile, Toshiba Machine, Okuma, Makino Milling and OKK
posted operating losses after posting profits in the
previous year. Hitachi Seiki and Tsugami had their losses
widen from the prior year.  Sales at Makino Milling and
Tsugami incresed, but not at the other five firms. Makino
Milling's sales dropped by 2.2 billion yen.

RIKISHAMAN: Daiei to liquidate it
The Daiei Inc. group said Friday it will sell its Japanese
bar chain to Tokkyu, a small restaurant chain operator, for
570 million yen, as a restructuring step.

Under the deal, the Daiei group will sell 14 of the
"Rikishaman" chain's 17 outlets to Tokkyu of Numazu,
Shizuoka Prefecture, on July 1, Daiei officials said. After
closing the remaining three outlets, it will liquidate the
chain by February, when its current fiscal year ends.

Rikishaman is a subsidiary of Daiei Holding Corp., the
biggest Japanese supermarket operator's holding company.
The liquidation of Rikishaman is part of Daiei Holding's
restructuring effort that centers on disposals of loss-
making operations and reduction of interest-bearing debts.
(Jiji Press English News Service  23-Jun-2000)

SOGO CO.: DIC's Matsuda hints at waiving Sogo loans
Deposit Insurance Corp. may forgive loans to Sogo Co.
held by Shinsei Bank after buying them from the
bank, DIC Chairman Noboru Matsuda said Friday.

Shinsei Bank, the successor of the nationalized Long-Term
Credit Bank of Japan, intends to sell the loans to DIC
based on a provision it was granted when the government
sold the bank to a U.S. investment firm-led consortium.

Matsuda told reporters that DIC, the banking industry's
safety net, has not yet received a request from Shinsei for
purchasing the Sogo loans. DIC is discussing what to do if
it is asked to buy them, he said.  Sogo, an ailing
department store operator, has requested creditor
banks to give up some 630 billion yen in loans in total,
including some 190 billion yen from Industrial Bank of
Japan and some 97 billion yen from Shinsei Bank.

Asked about whether DIC will waive the loans, Matsuda said
it will carefully examine the matter from its principles of
collecting loan assets properly and minimizing the use of
public funds.  In an overall judgment, DIC may accept
forgiving the loans as an exceptional case, he said. (Jiji
Press English News Service  23-Jun-2000)

SOGO CO.: To sell Gama stake but retain KL Sogo
The giant Japanese department store chain, Sogo Co Ltd, has
confirmed that it plans to sell its stake in Gama Holdings
Sdn Bhd, operator of the Gama Supermarket and Department
Store in Penang.

However, the Sogo supermarket and department store along
Jalan Tuanku Abdul Rahman in Kuala Lumpur "will not be
affected," a spokesman for the Sogo group in Malaysia told
Star Business.

The Sogo group operates the Kuala Lumpur Sogo supermarket
and department store in partnership with Pernas Properties
Sdn Bhd.  The Sogo spokesman declined to give more details
about the future of the Gama operations in Penang, or the
parties it is talking to about the sale.

According to the monthly magazine Retail Asia, the Sogo
group has been badly hit by the Japanese recession and has
asked creditors to cancel 639 billion yen (US$6bil) in
debts.  The magazine said Sogo was also looking for buyers
for its stores in China, Indonesia, Taiwan and Thailand.

Across the causeway, Sogo's Singapore operation is in the
process of working out a restructuring plan for both its
outlets at the Raffles City mall and at Paragon on Orchard
Road.  Singapore's Business Times recently reported that
the Nursalim family of the Gajah Tunggal empire was eyeing
Sogo's Singapore operations.

On the KL flagship store, a spokesman said the improvement
in sales boded well for the company.  The store chalked up
sales of RM221.77mil last year compared with RM234.35mil in
1998 and RM212.32mil in 1997.  "Our sales are improving
with the economic recovery,'' the spokesman said. (The Star
Online  24-Jun-2000)

SONY CORP.: Expected to post huge loss
Electronics giant Sony will suffer a huge loss in the first
quarter to June as it writes off cumulative advertising
costs under the new United States accounting standard,
according to a newspaper report.

Sony will book 110 billion yen (about HK$8.19 billion) in
group net loss in the quarter ending on June 30, Nihon
Keizai Shimbun reported.  The company will write off 95
billion yen worth of past promotional expenses accumulated
in the movie business, which were previously recognised as
part of its assets, the daily said.

Sony will also revise down its net profit projection for
the full year to March next year from 120 billion yen to 10
billion yen.  The accounting standard will affect earnings
of motion picture and television programme producers and
distributors after December 16.  Sony previously estimated
it would need to book US$950 million worth of one-time
business costs. (South China Morning Post  26-Jun-2000)

TOKAI CORP.: To complete restructuring by October
Tokai Corp. is eyeing October for completion of its
reorganization under the Corporate Rehabilitation Law.

At a recent shareholders meeting, the major maker of
disposable cigarette lighters formally made a decision to
clear all debts by the end of September with a payment of
8.8 billion yen.  To help make that payment, Tokai will
borrow 3 billion yen from parent Itochu Fuel Corp.

Originall, the company planned to repay a total of 24.1
billion yen within 12 years, after seeking forgiveness of
77 percent of total 105.1 billion yen in combined
liabilities.  If Tokai is able to pay off its debt entirely
this year as planned, the company will have rebuilt itself
in just 39 months after the rehabilitation plan was
approved by the Tokyo District Court in June 1997.

Tokai effectively went bankrupt in May 1994 and has been
restructuring under the corporate umbrella of Itochu Fuel
since 1997.


DAEWOO MOTORS: 3 bids received for it
Daewoo Motor Co's auction office said it has received a
joint proposal from DaimlerChrysler AG and Hyundai Motor
Co, another joint proposal from General Motors Corp and
Fiat SpA, and a solo proposal from Ford Motor Co for Daewoo
Motor.  The office plans to select one or two preferred
negotiators for the auction of Daewoo Motor by the end of
June, before naming the final winner in September.  (AFX
News Limited  26-Jun-2000)

DAEWOO MOTORS: Hyundai-DaimlerChrysler affirm joint venture
Hyundai Motors and DaimlerChrysler announced Monday morning
that they have agreed to set up a joint company to produce
mid to large size commercial vehicle and that Hyundai Motor
will hand over a 10% stake in it to DaimlerChrysler at W480
billion. The two companies also agreed to jointly develop
world car with Mitsubish Japan and to organize a consortium
to bid for Daewoo Motors. (Digital Chosun  25-Jun-2000)

HYUNDAI MOTOR CO.: Daimler-Chrysler taking a stake
DaimlerChrysler on Monday forged a strategic alliance
with South Korea's leading Hyundai Motor Co. to bolster the
German-US auto group's presence in Asia's fast-growing

"Hyundai Motor Company is an ideal partner to expand
DaimlerChrysler's growing presence in Asia,"
DaimlerChrysler chairman Juergen Schrempp said in a joint
news conference with Hyundai Motor chairman Chung Mong
Koo.  "Hyundai is successful, profitable and by far the
strongest player in the Korean automotive market. It has an
excellent distribution network throughout Asia and in
particular the fast-growing ASEAN (Association of
Southeast Asian Nations) countries."

Under the agreement, DaimlerChrysler will acquire a 10
percent stake in Hyundai Motor for 480 billion won (428
million dollars).  The deal would give DaimlerChrysler much
easier access to the emerging Asian markets with the right
brands and products, said Eckhard Cordes, a member of the
German-US firm's management board.

The two companies said "diverse projects" would follow as
they agreed to form a consortium to jointly bid for
insolvent Daewoo Motor Co. and develop a "world car."
DaimlerChrysler's deal with Hyundai marked its second Asian
alliance in recent months, following its acquisition in
March of a 34 percent stake in Japan's Mitsubishi Motors
Corp.  Mitsubish retains a 4.8 percent stake in Hyundai
Motor, which now controls 70 percent of South Korea's auto

The German-US giant and Hyundai formed a consortium to
jointly take over Daewoo Motor, formerly South Korea's
second largest auto maker with an annual production
capacity of two million units.

"Korea is a market with huge potential and the low cost
position of Korea would give us a better access to the
world market. We are confident of the future success of
this alliance," Cordes said.

Asia is a market for any automaker who aspires to attain
global leadership but non-Asian companies find it hard to
gain a foothold in the market, he said. DaimlerChrysler now
controls eight percent of the Asian market.  But he said
the German-US automaker has "no intention to fully take
over Hyundai Motor even in the long-term range."

DaimlerChrysler and Hyundai also said they would jointly
cooperate with Mitsubishi to make a "world car" targeting
global markets.  The three firms' efforts to develop a
platform to pruduce a competitive "world car" have "reached
to a significant level," they said.

In another tie-up, DaimlerChrysler and Hyundai Motor will
form a joint venture, one of the world's largest commercial
vehicle plants, to produce large buses and 2.5-tonne
trucks.  DaimlerChrysler will take a 50 percent stake in
the joint venture, which will run Hyundai's commercial
vehicle plant with an annual capacity of 100,000 units,
they said.

Hyundai Motor president Lee Kye-An earlier said the "world
car" will be a vehicle with a 1.0-1.5 liter engine, based
on a Hyundai model.  The two companies agreed to develop
platforms and technology for small passenger cars and also
a wide range of other vehicles.  They will also share
global networks supplying auto parts to reduce costs and
exchange top managers to enable Hyundai to learn advanced
skills.  (Agence France Presse  26-Jun-2000)

SEOUL BANK: Refusing assistance to Central Banking
Although the Financial Supervisory Service (FSS) announced
June 20 that it had paired eight ailing merchant banking
firms with healthy commercial banks to help overcome
liquidity problems in the merchant banking sector, as of
late last week, the banks have yet to provide any financial

Central Banking president Kim Suk-ki has met with Seoul
Bank president Kang Chung-won to ask for emergency funds of
W350 billion, but Kang has been refusing to budge. Although
FSS officials have been pressuring Seoul Bank to provide
funding, their efforts have been rebuffed by the bank.
(Digital Chosun  25-Jun-2000)


CHASE PERDANA: Finalises debt revamp plan
The Corporate Debt Restructuring Committee (CDRC) said
Chase Perdana Bhd and its subsidiaries have finalised a
CDRC-assisted debt restructuring agreement with their
lenders involving debts of 279.91 mln rgt.

Chase Perdana will submit the revamp scheme to the relevant
authorities for approval soon.  CDRC said in a statement
that the proposed corporate and debt revamp plan involves
the proposal of rights issue with warrants, debt
restructuring and increase in authorised share capital.

The revamp proposal includes full cash repayment of 71.71
mln rgt to fully secured financiers, while partially
secured financiers will be repaid 48.19 mln rgt in cash and
9.41 mln rgt nominal value redeemable convertible secured
loan stocks (RCSLS) and 4.55 mln rgt nominal value
irredeemable convertible unsecured loan stocks (ICULS).

The unsecured financiers will be repaid 97.85 mln rgt cash,
214,000 Chase Perdana shares at 1.50 rgt each, 41.66 mln
rgt nominal value RCSLS and 20.17 mln rgt nominal value
ICULS.  Essential creditors will be repaid 26.72 mln rgt
cash and issued up to 34.06 mln rgt nominal value ICULS.

Trade and other creditors would be issued about 5.76 mln
rgt nominal value ICULS and about 1.31 mln rgt will be
waived.  The proposed rights issue of up to 147.366 mln new
Chase Perdana shares together with 73.683 mln new
detachacble warrants will provide the much needed working
capital for its existing businesses, including the
University Malaysia Sabah project, and to enable it to
raise funds for its debt restucturing, CDRC said.

The proposed increase in share capital to 500 mln rgt
comprising 500 mln Chase Perdana shares, from 150 mln rgt
before, will enable it to accommodate the new share issue
resulting from the proposed righst and warrants, the
conversion of its loans stocks and exercise of warrants,
it added.

"The proposed debt restructuring plan of Chase Perdana is
expected to address the present difficulties experienced
(by it) in meeting the immediate debt obligations due to
its current cashflow position," it said, adding that the
corporate and debt restructuring would put the group on a
stronger financial footing.

With the finalisation of Chase Perdana's debt
restructuring, CDRC has successfully assisted in the debt
restructuring of 24 companies with a total debt of 18.16
bln rgt. (AFX  23-Jun-2000)

LION GROUP: Finalizing restructuring scheme
The financially-troubled Lion group is believed to be close
to wrapping up its restructuring plan and is expected to
make an announcement soon.

The final details, which are critical to the success of the
revamp scheme, are likely to require the consent of at
least 70% of its creditors.  "The management is very
sincere about the restructuring of the group and paying off
creditors with the best package possible over a period of
time," an analyst familiar with the group told Star

According to sources, the primary objective of the massive
restructuring exercise is to streamline the diversified
group into a leaner and more focused business entity.
They said the management was firm with its intention to
retain the business for the long term and deliver what was
promised to creditors.

The group is expected, among other things, to issue
serialised bonds in different tranches with different
maturity periods.  "Lion will probably try to pay off its
creditors over 10 years," the analyst said.

Other analysts said the group's creditors were expected to
take up the bonds in what may appear to be another form of
financing.  However, the creditors would be paid interest
and the outlook is brighter now for the group with the
economy recovering.

"The entire group may not be in the black yet but it is
expected to come up with ways to pay the interest to
bondholders," an analyst said.

Money is also expected to come from the group's steel
operations and sale of assets.  The steel operations of
Lion Land Bhd are expected to register a small net profit,
conservatively estimated at RM6mil to RM7mil, for the
current financial year ending June 30, compared with a net
loss of RM53.8mil the previous year.

"It is a small but good sign of a turnaround," the analyst

Lion Land's capacity utilisation has improved from 60% in
the last financial year to between 75% and 80% currently.
Its iron rod production plant is running near full capacity
while its hot briquetted iron (HBI) operation is expected
to run at full capacity by financial year 2001 as the new
plant under Megasteel Sdn Bhd comes into full commercial
production.  Megasteel, whose profits will ultimately
accrue to the holding company Lion Corp, is expected to
generate strong cashflows.

"It produces a unique type of steel that is not made here
or imported. Therefore, it is in a monopoly situation," the
analyst said. "We expect Megasteel to generate a few
hundred million ringgit cashflow by the end of next year.
But from the end of this year, when it comes into full
production, Megasteel is expected to start helping to pay
off debts."

The group's main problem appears to be Amsteel Corp Bhd,
which has lots of other businesses, some unprofitable.
Amsteel has incurred loans of nearly RM8.5bil which made up
the bulk of the RM10.5bil in debts that the Lion group has.
Major asset sales, expected to be spread over five years,
would involve the potential divestment of:  Shopping
complexes such as the Subang Parade and Klang Parade in
Selangor and the Mahkota Parade in Malacca; Asia Commercial
Finance Bhd; A large stake in Malaysia British Assurance
Bhd; and Klang-based Amsteel Securities Sdn Bhd.

One major transaction already completed has been the sale
of a 50% stake in Inverfin Sdn Bhd, owner of Menara Lion,
in a deal valued at RM200mil.  Inverfin is 70% owned by
Amsteel and the deal resulted in a net cash inflow of
RM55.53mil.  The group was supposed to have made an
announcement on their restructuring in April but had to
defer it because some issues had to be thrashed out with
more than 100 creditors. (The Star Online  24-Jun-2000)

MANCON BHD: To propose restructure scheme soon
Mancon Bhd will be proposing a restructuring scheme to the
KLSE next month, its executive director Raj Kannan said.

Raj told Star Business after the company's AGM on Saturday
that if the scheme was approved, "Mancon would be
substantially debt free'' and would return to the black
this year.  The company has outstanding debts of about
RM1bil, he said.  Raj was confident that the scheme, which
took 18 months to develop, would go through.

"It's a fair scheme and addresses the concerns of all
lenders and trade creditors," he said.

Raj said the restructuring would result in cash injection
into the company which will set the course for its future
growth.  At the company level, Mancon recorded a lower pre-
tax loss of RM139.7mil compared with RM180.5mil the year
before while at the group level it reported a lower pre-tax
loss of RM204.7mil compared with RM894.8mil in 1998.

Mancon executive vice-chairman Soo Tian Chai said in the
company's annual report that given Bank Negara's forecast
of at least 5% growth for the construction and property
development sectors and the group's corporate and financial
restructuring, Mancon was poised to secure more projects
and to chart strong growth in the coming years.

Mancon currently has secured a project from Telekom as well
as several development projects from other listed
companies. It has also tendered for major infrastructure
projects announced by the Government, including the East
Coast Expressway.  Raj said in the past 18 months, the
company had redirected the group to focus on what it knows
and does best--engineering and construction.  It has also
taken steps to minimise its involvement in overseas
projects.  (The Star Online  26-Jun-2000)


ASB GROUP: Seeks another 60-day immunity from claims
The cash-strapped ASB Group of Companies has asked the
Securities and Exchange Commission to extend for another 60
days an order suspending all claims or actions filed
against it by its creditors while a rehabilitation plan is
being hammered out.

The ASB Group asked that the suspension order be extended
from July 3 Sept. 1 to allow creditors to comment on the
detailed rehabilitation plan which has yet to be submitted
to the commission.  Also, the ASB Group said the extension
was necessary to enable the commission to carefully
evaluate the proposed rehabilitation plan and the comments
of the creditors.

The salient features of the group's detailed rehabilitation
plan to be filed with the SEC include the repayment of the
debts through dacion en pago or outright sales of assets in
order to lighten the debt burden of the ASB Group, the
formation of strategic alliances with third party
investors, and the streamlining of its operations.

The group's assets will be sold and the net proceeds from
the sale will be distributed when surplus funds total more
than P10 million.  The ASB Group is encouraging creditors
to effectively swap their debt obligations with the
purchase of its condominium units. Creditors of ASB
Holdings will be entitled to recover six-percent interest
per annum calculated from the balance outstanding at March
28. The interest will be paid only after payments are made
to creditors of ASB Holdings.

Should the SEC choose not to extend the suspension order,
creditors of the ASB Group could start initiating
foreclosure proceedings against the assets of the cash-
strapped firm. Owned by real estate developer Luke Roxas,
the ASB Group last month sought a moratorium on the payment
of its P12.7 billion in debts owing to tight liquidity

Known for its numerous luxurious yet affordable real estate
projects, the ASB Group comprises of ASB Holdings Inc., ASB
Realty Corp., ASB Development Corp., Tiffany Tower Realty
Corp., ASB Land Inc., ASB Finance Inc., Makati Hope
Christian School, Bel-Air-Holdings, Winchester Trading
Inc., VYL Development Corp., Gerick Holdings Corp. and
Neighborhood Holdings Inc.

In its petition for rehabilitation with the SEC, the ASB
Group said that while its assets amounting to P19.41
billion are more than enough to cover all its debts,
massive withdrawal of loans by creditors had impaired its
ability to pay off its obligations.

Of its total debts, P5.35 billion came from banks while the
balance came from suppliers and individual creditors who
advanced money to ASB Holdings to earn higher rates of
interest. These funds were then disbursed and invested by
Roxas in the ASB Group and its projects. (Manila Times  24-

METRO PACIFIC: Won't sell its PLDT shares -- yet
Metro Pacific Corp. (MPC) has no plans of disposing of its
shares in Philippine Long Distance Telephone Co. (PLDT) and
First e Bank (formerly PDCP Bank) despite announcing that
it would focus on property development and its need for
cash, an official told The STAR yesterday.

Grant Ferguson, MPC chief finance officer, said it is
studying various options on how to make money from its
eight percent stake in PLDT, currently valued at around
P10.4 billion, without selling it. MPC cannot sell its PLDT
shares until after April 2001 because it has to comply with
the mandatory lock-up period.

MPC acquired PLDT shares early this year after it swapped
its stake in Smart Communications into PLDT shares with its
parent company Hong Kong's First Pacific.

"There are a lot of ways to derive value from our
investments in PLDT without necessarily selling it. Selling
it is not our only option," Ferguson said.

Analysts, however, expect MPC to dispose of its PLDT
shares. Expected buyers include First Pacific and NTT of
Japan.  On the other hand, he said it intends to keep its
33 percent equity in First e Bank since it would complement
the firm's operations.

"It (bank) will provide support for Metro Pacific both in
the telecom business and in the property side," he noted.

The bank, he said, could provide clients of its property
business financing packages to enable them to buy their
products.  MPC president Ricardo Pascua explained that
through PLDT, it is able to provide its bank clients the
latest in electronic banking services.

"We should be responsive to what's going on in the market.
And First e Bank provides mobile phone banking services.
Its specialization is in the electronic services," he said.
Ferguson brushed aside fears that the firm may not be able
to meet its obligations that are due this year if it is not
able to dispose these assets. "We will meet our obligations
as they fall due," he stressed.

He said the firm has commissioned ING Barings to help Metro
Pacific create value for its PLDT shares as well as to
enable it to refocus into a purely property company.
(Philippine Star  24-Jun-2000)

REYNOLDS PHILS: Starts debt talks;seeks 10-yr grace period
Debt-laden aluminum sheet manufacturer Reynolds Philippines
Corp. (RPC) is asking its creditor banks for a 10-year
grace period as well as working capital line to restructure
its over one billion Philippine peso (PhP) (US$23.3 million
at PhP42.879:US$1) debts.

In an interview with BusinessWorld over the weekend, RPC
chief financial officer George Navarra said the management
is in the middle of negotiations with creditors and expects
to come up with an agreement in the coming weeks.

"We've given them a proposal to restructure our debts over
a 10-year period. Some are amenable to that but there are
still some banks which have not given their approval. We've
also asked them to grant us additional working capital
lines which have shorter terms," the RPC official said.

Sources earlier told BusinessWorld that loans of the
aluminum sheet maker have gone past due. Assets which the
management put up as collateral are also reportedly not
enough to cover the company's entire obligations.

RPC's biggest creditor is Land Bank of the Philippines with
more than PhP900 million in exposure. The company also has
some PhP206.37 million in loans owed to All AsiaCapital and
Trust Corp.  RPC experienced financial difficulty when
operations were affected by the huge cost of raw materials
which has shot up at the height of the crisis. The company
imports raw materials from Japanese supplier Marubeni Corp.

RPC also faced stiff competition from other local and
foreign companies which have lower overhead costs.
Currently, the company is operating at less than 50% of its
full capacity.  Aside from the debt restructuring, Mr.
Navarra said the management is also looking at tapping
strategic partners that will infuse much-needed equity to
pay off RPC's debts.

"Reynolds' strategy would always be to increase equity
through strategic partnerships. We will continue to pursue
that but at the moment there are no discussions. None has
so far entered the picture although we have received
enquiries from potential investors," he said.

RPC is currently evaluating non-core assets which can be
put up for sale to raise cash. Mr. Navarra said between 15
to 16 hectares of land in the company's 44.5-hectare
property in Dasmari¤as, Cavite may have to be sold.

RPC is presently using only 10.8 hectares of the property.
It has already sold 10 hectares to Malaysian Leader Cable.
The company has also spun off its aluminum manufacturing
unit to prepare it for interested buyers.

RPC was established in 1954 by US-based Reynolds
International, Inc. to manufacture and distribute aluminum
sheets, foil and extruded sections used in the packaging,
container, constriction, appliance manufacturing and
vehicle manufacturing industries.  Its stockholders include
Profinda Holdings Corp., Marubeni Corp., AllAsia Capital,
Social Security System, AFP Retirement and Separation
Benefits System, Piso Bank, All AsiaCapital Growth Ventures
Phils. Inc., AllAsia Developoment Corp., and Merchant
Investment. (Business World  26-Jun-2000)

URBAN BANK: PDIC files first case vs former execs
The Philippine Deposit Insurance Corp. (PDIC) last Friday
filed its first case against the top executives of closed
Urban Bank after getting the go signal from the Monetary
Board, the policy making body of the Bangko Sentral
(Central Bank of the Phils.).

Charges of estafa and falsification of documents were filed
at the Department of Justice (DoJ) against Urban Bank
president Teodoro C. Borlongan and two other officers who
were signatories of a five-million-peso (US$116,000 at
PhP42.879:US$1) manager's check, BusinessWorld sources

The sources, however, said the DoJ did not accept the
documents last Friday since they lack the signature of the
chief legal counsel of the PDIC. Estafa is punishable by an
imprisonment of six months and one day up to six years.
The PhP5-million manager's check, payable to a certain
depositor, was issued on April 25 to supposedly service the
depositor's pretermination of his placement in the bank.
Urban Bank closed the next day, April 26.

"The check was encashed by Mr. Borlongan over the counter,"
one of the sources said.

The depositor, however, testified in an affidavit he did
not authorize anybody to preterminate his investments, the
sources said.  "He did not order a pretermination and he
had not received any money," one source said.

Although similar cases have previously been filed against
prominent bankers, local regulators have yet to
successfully prosecute a banker accused of fraud. Sources
said the PDIC is building up more cases against Urban Bank
executives for generally engaging in "unsafe and unsound
banking practices". These include possible violations to
the prudential limits on loans to directors, officers,
shareholders and related interests (DOSRI) and to the
single borrowers' limit (SBL).

Banking laws limit a bank's DOSRI loans to 15% of its
unimpaired capital or 100% of total deposit base. Single
borrowers, meanwhile, are limited to 25% of the bank's
unimpaired capital.  Urban Bank and its investment house
subsidiary Urbancorp Investments, Inc. (UII) may also be
liable for representing its investment instruments as bank
deposits, the sources said.

While UII has a trust license from the central bank to
operate a mutual fund-type vehicle, it does not have a
quasi-banking license that will allow it to accept deposits
from clients. Both DOSRI and misrepresentation cases may be
lodged as criminal charges, depending on the severity of
the violations.

Meanwhile, sources said the PDIC is still in the process of
analyzing the rehabilitation proposals for Urban Bank which
were submitted by Cojuangco-controlled Bank of Commerce
(Bancommerce) and Asia United Bank (AUB).

While Bancommerce is keen on Urban Bank and its investment
house, AUB is interested in Urban Bank alone. The sources
said PDIC is studying the viability of the proposal "from
the point of view of the bank."  (Business World  26-Jun-

VICTORIAS MILLING CORP.: Another creditor added to list
Another creditor was added to the already long list of
lenders the debt-saddled Victorias Milling Co., Inc. (VMC)
is obligated to pay immediately after it gets back on its
feet. The Supreme Court recently ordered the ailing sugar
firm to honor an 11-year-old sales contract and deliver
23,000 bags of sugar to Consolidated Sugar Corp. (CSC).

In a decision, the High Tribunal said since CSC's
predecessor-in-interest, St. Therese Merchandising (STM),
paid for 25,000 sugar bags, these should be duly turned
over to the buyer, regardless of VMC's predicament.

"(VMC) clearly had the obligation to deliver said commodity
to STM or its assignee... Having transferred title to the
sugar in question, (VMC) is now obliged to deliver it to
the purchaser or its assignee," said the court, through
Associate Justice Leonardo A. Quisumbing.

When Vicmico was fully operational, STM regularly bought
sugar from the Bacolod-based sugar miller. In the course of
their dealings, VMC issued delivery receipts to STM as
proof of purchases. In December 1989, VMC issued a delivery
receipt covering 25,000 sugar bags to STM, which sold it to
CSC for 14.8 million Philippine pesos (PhP) (US$345,000 at

After 2,000 bags were released, VMC refused to allow
further withdrawal of sugar, claiming STM "had already
withdrawn all the sugar covered" by cleared checks STM paid
VMC. CSC, four months after, filed a civil case against
owner Teresita Ng Sy.  It said since its predecessor-in-
interest, STM, had fully paid for the sugar covered by the
delivery receipt, Vicmico " had no justification for
refusing delivery of the sugar."  (Business World  26-Jun-


SIAM CITY BANK: Newbridge vows Bt-5 billion commitment
US-based Newbridge Capital Fund said its Bt5-billion
investment plan should remove any doubts about its long-
term commitment to Siam City Bank as it joins the next
round of bidding for the nationalised bank, scheduled for
next month.

"We're going to invest a lot of money in this bank ... it
needs a lot of capital. How could anyone who wants to be a
short-term investor invest this much? We're not here to buy
a banking licence -- we're here to help support financial-
sector recovery," said Bien Kiat Tan, managing director of
the fund's Singapore office.

The report that the Thai government will suspend talks with
Newbridge over the sale of Siam City Bank (SCIB) was false,
Tan said. The Bank of Thailand (BOT) has made no decision
regarding SCIB, he said. The government's adviser in the
bank's privatisation Morgan Stanley Dean Witter said that
there was no specific response from authorities regarding
Newbridge's bid, and that the BOT will continue negotiating
with it, Tan said.

Chatu Mongol Sonakul, the central bank's governor, said
recently that the fund's proposal was not attractive
because, unlike the strategic foreign partners of the
nationalised banks, Newbridge is not a bank and has no
long-term commitment to run SCIB.

According to the plan submitted to the BOT, the fund
intends to buy a majority stake in SCIB for a very low
price and then sell it in the near future, a source said.
However, Tan said that Newbridge is committed to a long-
term investment and that it intends to sell SCIB stakes
back to the government once the bank is in good shape.

Newbridge will invest at least Bt5 billion in addition to
the price of the SCIB stake, Tan said. It will develop new
products, retrain staff, and overhaul the bank's asset and
liability management, credit procedures and branch
management.  SCIB's privatisation has been going on since
the government's advisor Morgan Stanley Dean Witter
launched a worldwide search for suitable investors a year

At least three or four groups of investors, including
Newbridge, were on the government's shortlist in the fourth
quarter of last year. Formal bidding began last October
after the due diligence was completed. However, investors
were asked to resubmit their plans in December after the
Development Bank of Singapore and Ankar Fund submitted a
joint bid.

Newbridge became the sole bidder after the Ankar Fund group
withdrew, said one source. The government then called
another round of bidding since some of Newbridge's
conditions -- particularly the proposed changes to the loss
and gain sharing agreement -- were not acceptable, the
source said.

"There were some terms that we proposed which may not have
been fully accepted by the BOT. But this can happen in
every deal," Tan said.

Newbridge accepts the loss and gain sharing agreement, but
would like to modify it a bit, he said. After the due
diligence was completed last August, Newbridge found that
SCIB's non-performing loans were higher than expected, he
said. Consequently, the fund asked the government for more
downside-risk protection.

After purchasing 75 per cent of SCIB, Newbridge would keep
the bank's name, logo and core management, but would
gradually rehabilitate the bad assets that other investors
would not buy, Tan said. (The Nation  26-Jun-2000)

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

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Darryl Henning, Managing Editor, James Philip P.
Jover and Cristina Pernites, Editors.

Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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