TCRAP_Public/000628.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

             Wednesday, June 28, 2000, Vol. 3, No. 125

                                       Headlines


* A U S T R A L I A *

EDGE GROUP: Liquidation likely next week
FARNELL & THOMAS: Stock drops 80% after insolvency warning


* C H I N A  &  H O N G  K O N G *

CENTURY CITY: Looks at debt-reduction options


* I N D O N E S I A *

PT BANK OF BALI: Recapitalization plan delayed
PT DHARMALA SAKTI: Seeks to annul bankruptcy status


* J A P A N *

TOKYO SOWA BANK: To be sold to Ross-led fund


* K O R E A *

DAEWOO HEAVY INDUSTRIES: S'holders okay split plan
DAEWOO MOTORS: Draws bidding trio
DAEWOO MOTORS: DaimlerChrysler only interest in parts
HYUNDAI MOTOR: Founder maneuvers to slow/stop spin-off
SEOUL BANK: Revamping ahead of sale


* M A L A Y S I A *

NALURI BHD: Signs rehab pact, awaits gov't approval
NALURI BHD: Not planning to sell MAS stake
PAN PACIFIC ASIA: Provides RM330M for doubtful debts
PUNCAK VISTA SDN: Still in default on loan
TRANS CAPITAL HLDGS: Rehab agreement finalized
TRANS CAPITAL SDN: Rehab agreement finalized


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

URBAN BANK: DoJ to fast-track charges vs. officials
VICTORIAS MILLING CORP.: Needs new partner, capital


* S I N G A P O R E *

CLOB: EffCap offer acceptors to get personalized trade data
JURONG CEMENT: Plunges into red
THAKRAL CORP.: Reaches standstill pact with banks


* T H A I L A N D *

ADVANCE PAINT &CHEMICAL: Reports debt rehab progress to SET
ALFA APPAREL: Court approves rehab plan
ALFA SPINNING CO.: Court approves rehab plan
ALFA PROCESSING CO.: Court approves rehab plan
ALFA TEXT INDUSTRIES: Court approves rehab plan
HI-PETCH EQUIPMENT CO.: Court approves rehab plan
MODERN HOME DEVELOPMENT: HKR Group to take stake
TANAYONG: Posts Bt3B net loss
TCJ MOTOR: To propose debt restructuring scheme
THAI ABS CO.: Court approves rehab plan
THAI PACKAGING INDUSTRY: Court approves rehab plan
TPI OIL CO.: Court approves rehab plan


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

EDGE GROUP: Liquidation likely next week
----------------------------------------
The Edge Group, a highly lauded computer empire built by
failed Internet entrepreneur Mr Jen-Tse (Johnson) Wang,
is likely to be put into liquidation next week.

Edge was teetering on oblivion two years ago even though it
was pulling in almost $400 million in annual sales.  It
earned a profit of only $1.3 million from revenue of $389.5
million in the 1997-98 financial year, according to a
preliminary report issued last night by its voluntary
administrator, Armstrong Wily & Co.

In 1999 Edge was Australia's biggest personal computer
assembly business, shipping 10,000 units per month under a
variety of brand names, most notably KTX.  In June last
year Mr Wang was described as "Australia's most successful
computing entrepreneur." In a national newspaper he was
described as a quiet achiever who "focused not on building
a high profile but on the distribution channel to quietly
make the bucks at the bottom line."

In fact, when this article was published, Edge had taken a
steep dive into the red. Its stunning drop in revenue
remains baffling, even taking into account a continuing
fall in margins across the PC industry.  Revenue slumped 45
per cent to $213.6 million in 1998-99 and the companies
made a loss of about $3 million.

Armstrong's report shows the Edge Group was at that time
already unable to pay its debts.  In May an unnamed
creditor had cut its relationship with Edge, after
unsuccessfully trying to recover $4 million in debt. Three
months later Microsoft Australia launched legal action
against Edge, seeking $12.9 million. (Edge's books show a
liability of $10.5 million, believed to be unpaid licensing
fees for Microsoft software.)

At this time Edge was owed about $37 million from its
related companies, most of which were based overseas, but
it was unable to obtain these funds. Edge had up to 40
related companies around the world - most of which have now
ceased trading - but their accounts have not yet been
recovered.

Desperate for money, Mr Wang was preparing to spin off
Edge's three-year-old Internet service provider, eisa.
Eisa, which also subsequently collapsed, successfully
raised $57 million.  Mr Wang beseeched the eisa board to
invest in Edge Group, according to an eisa insider. But the
board refused to make a significant investment.

Mr Wang placed the Australian operation into voluntary
administration two weeks ago and subsequently left the
country.  Edge's Australian operations have only $2.4
million in realisable assets, compared to $36.5 million in
debt, which Mr Wang - and another director, Ms Siu Ho
Delphia Lai - may be personally liable for.

The two directors also owe $2.9 million in loans from two
of the Edge companies. Both are believed to be overseas,
making recovery of any debts difficult.

"I believe the director, Jen-Tse Wang, is not in Australia
and I doubt that he will return," said Armstrong partner Mr
Allan Topp in the report.

As of last night, Mr Wang's lawyer, Mr Alex Law of AJ Law &
Co, had not received any instructions from Mr Wang. Mr Law
declined to reveal Mr Wang's whereabouts.

"Liquidation is the only option you've got," Mr Topp said
last night. "There are probably not too many collapses like
this in Australia in the recent past."

Edge's creditors will meet on July 4. (Sydney Morning
Herald  27-Jun-2000)

FARNELL & THOMAS: Stock drops 80% after insolvency warning
----------------------------------------------------------
Shares in light engineering group Farnell & Thomas Ltd
plummeted 80 percent today, after the company warned in its
annual report it was facing insolvency.

Farnell & Thomas shares were suspended in early May after
the company failed to lodge its annual report with the
Australian Stock Exchange.  In the report, which was
released yesterday, directors said the company may have to
seel assets to meet its debt.

Executive chairman Bill Jeffrey said cash resrves had been
depleted and support from banks was needed for the company
to continue. The company will hold it annual general
meeting in Brisbane tomorrow. The shares were reinstated
today and at 1323 AEST Farnell & Thomas shares were 44
cents lower at 11 cents. (Australian Financial Review  27-
Jun-2000)


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

CENTURY CITY: Looks at debt-reduction options
---------------------------------------------
Debt-ridden Century City wants to reduce its debts by HK$2
billion through asset disposal and share-capital
enlargement, according to group chairman Lo Yuk-sui.

He said the group, which includes ultimate parent Century
City International, property arm Paliburg Holdings and
hotel arm Regal Hotels International, had net borrowings of
HK$9.6 billion excluding contingent liabilities.  Various
options for debt reduction were under consideration, he
said.

Century City holds a 60 per cent stake in Paliburg which
holds 74 per cent in Regal.  Mr Lo said Century City had
HK$700 million of debts to repay in October and talks with
banks were under way.  He said Century City was also
looking to acquire his personal interests in mainland
fibre-optic network operator Century Digital Enterprise,
probably by issuing new shares.

Some foreign corporations were in talks to acquire stakes
in the fibre-optics venture through vendor financing and
equipment provision arrangements, he said. The venture
needed billions of dollars in the next several years, said
Mr Lo, but it was not the right time to consider a listing.

Mr Lo said Paliburg's plans to raise cash through a
mortgage-backed securitisation scheme were under way. The
company was also bidding to secure finance for its luxury
residential project in Stanley.  Paliburg is proposing a
mortgage-backed securitisation of its Paliburg Plaza in
Causeway Bay and Kowloon City Plaza.  (South China Morning
Post  27-Jun-2000)


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

PT BANK OF BALI: Recapitalization plan delayed
----------------------------------------------
The House of Representatives refused to approve on Monday
the government's proposal to recapitalize publicly listed
Bank Bali until a legal dispute with the bank's former
owner has been settled.

Head of House Commission IX Sukowalujo Mintorahardjo
expected the court to immediately settle the legal dispute
so that a decision on the fate of Bank Bali could be taken.

"We can't approve the proposal to recapitalize Bank Bali
until a legal certainty on the bank has been obtained,"
Sukowalujo said in conclusion of a hearing with Minister of
Finance Bambang Sudibyo and chairman of the Indonesian Bank
Restructuring Agency (IBRA) Cacuk Sudarijanto late on
Monday.

He also appealed to both Rudy Ramli, the former owner and
CEO of Bank Bali, on one side and IBRA and Bank Indonesia
on the other to seek an out of court settlement.  The
government is seeking approval to recapitalize Bank Bali at
a cost of Rp 4.99 trillion (US$580.23 million), which will
be financed by issuing bonds.

The recapitalization is expected to take place in August
after a shareholders meeting scheduled for the end of this
month.  But there have been fears that Rudy will in the end
win the legal battle over Bank Bali, leaving the state with
huge losses for having recapitalized the bank. Bank
Indonesia and IBRA decided in July last year to nationalize
Bank Bali after the Ramli family failed to come up with the
necessary cash requirement to recapitalize the bank.

Rudy filed a lawsuit against the decision, and the Jakarta
Administrative Court surprisingly ruled that the
nationalization of his bank was illegal.  Bank Indonesia
and IBRA have since launched an appeal, which is still
being processed.  The government said that if a decision on
the recapitalization of Bank Bali was not reached by the
end of this month, the recapitalization program would take
place in September in order to wait until a June financial
report on the bank.

Bambang said that the delay into September would increase
the recapitalization cost to Rp 5.2 trillion.  But Bambang
also said at the hearing session that the option to
liquidate the bank or merge it with other banks was still
open.  He admitted, however, that liquidating the bank
would be costlier as the government would have to provide
more than Rp 6.8 trillion in cash to guarantee the time
deposits kept in the bank.

He also pointed out that the bank's 6,000 employees would
loose their jobs and that could potentially create a new
social problem.  Bambang also expected that the government
would be able to reach an out of court settlement with the
Ramli family before recapitalizing the bank.

The recapitalization of Bank Bali has been delayed several
times. The government was supposed to have recapitalized
the bank last year but the program was delayed after the
bank was hit by a high profile scandal dubbed "Baligate"
which centered on the illegal transfer of some $80 million
from the bank to a private firm linked to the then ruling
Golkar Party ahead of the 1999 general election.

Bank Indonesia Governor Sjahril Sabirin is currently being
detained at the Attorney General's Office over his alleged
involvement in the scandal.  The government missed another
deadline in May after Rudy filed a lawsuit. Bank Bali is
one of three banks which have not yet been recapitalized by
the government. The other two are state Bank Rakyat
Indonesia (BRI) and Bank Tabungan Negara (BTN).

The government's bank recapitalization program is aimed at
bringing the capital adequacy ratio (CAR) of the banks to
the minimum 4 percent level. CAR is the ratio between
capital and risk weighted assets. The higher a bank's CAR,
the better it is. The capital condition of the country's
banking sector deteriorated following the economic crisis
that started in the middle of 1997.

The government initially targeted the CAR of the country's
banking industry to reach the minimum 4 percent by the end
of this month, and 8 percent by the end of 2001.
Cacuk said that Bank Bali was one of the country's "best"
banks because it had not violated the legal lending limit
ruling, and had not been aided by Bank Indonesia liquidity
support.

He said that Bank Bali's CAR level last year was minus 69.9
percent. The bank, with 280 branches and total assets of Rp
6.43 trillion, suffered a financial loss of Rp 2.09
trillion last year. (Jakarta Post  27-June-2000)

PT DHARMALA SAKTI: Seeks to annul bankruptcy status
---------------------------------------------------
Publicly listed PT Dharmala Sakti Sejahtera has asked the
Supreme Court to annul its bankruptcy status, claiming that
the verdict is legally flawed.

Dharmala Sakti's lawyer Jimmy Chandra Maschur said on
Monday that the verdict issued by the Jakarta Commercia
Court in early June breached standard procedures.

"There were irregularities during court procedures by which
Dharmala Sakti was declared bankrupt," Jimmy said, adding
the company had filed an appeal to protest the decision.

The majority creditors of Dharmala Sakti voted in early
June to bankrupt the listed company after they turned down
the latter's debt restructuring proposal.  A day after the
vote, the Commercial Court, on behalf of the creditors,
officially declared Dharmala Sakti bankrupt.

According to an existing law, a company which is declared
bankrupt due to a vote by creditors can not make an appeal.
Jimmy said the voting was held prematurely, adding that the
Jakarta Commercial Court should have given Dharmala Sakti
time to revise its debt restructuring proposal to persuade
the voting creditors.

"Depriving Dharmala Sakti of its rights has sent the
company into bankruptcy," Jimmy said.

He also criticized that the weighting of the vote of each
creditor was based on a wrong rupiah to U.S. dollar
exchange rate.  Dharmala Sakti owes debts in both rupiah
and dollars to various creditors.

"The result of the voting was invalid as it was not using
the appropriate rupiah to dollar exchange rate as published
by Bank Indonesia," Jimmy said.

Joint venture creditor PT Hanil Bakrie Finance Corporation
filed a bankruptcy suit in mid-February against Dharmala
Sakti for the latter's failure to repay a US$2.4 million
matured debt.  Dharmala Sakti then asked the court to hold
off issuing a verdict in the bankruptcy suit, which was
filed in order to allow the holding company to negotiate
its debt restructuring with the creditors.

In the 1998 Bankruptcy Law the request is possible as
stipulated in its suspension of payment section, which says
that a company facing a bankruptcy suit can temporarily
halt the action by filing a suspension of payment request
to the court. Under the suspension of payment procedure,
the fate of the company would be decided by the creditors'
majority vote instead of court ruling.

Among the largest creditors of Dharmala Sakti who
participated in the voting process were the Indonesian Bank
Restructuring Agency (IBRA), Hong Kong-based Peregrine
Fixed Income, currently in liquidation, the Singapore
branch of the Canadian Imperial Bank of Commerce (CIBC),
joint venture PT AB Sinar Mas Finance and the Jakarta
branch of the Standard Chartered Bank. Dharmala Sakti is a
holding company of the Dharmala Group, owned by the
Gondokusumo family.

There are five companies affiliated with the Dharmala Group
which have been declared bankrupt: PT Dharmala Agrifood, PT
Putra Surya Multidana, PT Deemte Sakti Indo, PT Putra
Sejahtera Persada and foreign affiliate Detron Ltd. of
Singapore. (Jakarta Post  27-Jun-2000)


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

TOKYO SOWA BANK: To be sold to Ross-led fund
--------------------------------------------
The failed Tokyo Sowa Bank Ltd. said Tuesday it was to be
sold to a US investment fund led by financier Wilbur Ross
in the fund's second takeover of a Japanese lender.

The government's Financial Reconstruction Commission (FRC)
had selected Ross' Asia Recovery Fund as the buyer for
Tokyo Sowa, which was declared insolvent and placed under
state control in June last year, the bank said.

"We have signed a basic accord on our bank's transfer of
operations to Asia Recovery Fund Ltd.," said Tokyo Sowa in
a statement.  "We will proceed with discussions between the
two parties for a final transfer of operations."

The agreement marks only the third outright takeover of a
Japanese bank by foreigners, including the FRC's decision
last month to hand over the failed Kofuku Bank Ltd. to the
Asia Recovery Fund.  The Long-Term Credit Bank of Japan
Ltd. (LTCB) became the first Japanese bank to fall outright
into foreign hands in February, when a syndicate led by
Ripplewood Holdings LLC of the United States won the right
to buy it.

LTCB was relaunched as Shinsei Bank this month. Shinsei,
along with travel agent HIS Co., was also in the running to
take over Tokyo Sowa Bank, which was established in 1950.
The FRC had chosen the Ross fund because its proposal
called for the government to pump less public money into
the insolvent bank than the Shinsei and HIS proposals,
Kyodo News reported.

Ross, 62, who owns US investment firm WL Ross and Co., is a
famed figure in US financial circles who until March was
executive managing director of Rothschild and Co.  Ross is
seeking to create a holding company under which to put both
Osaka-based Kofuku and Tokyo Sowa, Kyodo quoted FRC sources
as saying.

The Tokyo-based bank filed a bankruptcy application with
the FRC, set up in 1998 to shore up Japan's crumbling
financial industry, for public protection last year.
Its capital-to-asset ratio was 2.4 percent just before it
collapsed, far below the four percent required by Japan's
Financial Supervisory Agency for banks operating
domestically.  The Tokyo-based bank, strangled by bad
loans, collapsed with a huge capital deficit of 102.2
billion yen (971 million dollars).  (Agence France Presse
27-Jun-2000)


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

DAEWOO HEAVY INDUSTRIES: S'holders okay split plan
--------------------------------------------------
Shareholders of Daewoo Heavy Industries yesterday approved
a plan to split the company into two units, a shipbuilding
company and a general machinery company.

The division of the company will take effect Aug. 1 and the
two new firms will be separately listed on the Korea Stock
Exchange Sept. 1, said a company official.  The two new
units will also be completely separated from their parent
Daewoo Group. The shipbuilding company will have a debt-to-
equity ratio of 245 percent, while the ratio for the
machinery company will be 239 percent.  (The Korea Herald
28-Jun-2000)

DAEWOO MOTORS: Draws bidding trio
---------------------------------
The bidding war for the bankrupt Daewoo Motor Co. shifted
into high gear Monday, with three offers submitted for the
company, the most conspicuous victim of the economic crisis
that nearly plunged South Korea into bankruptcy in 1997.

Two alliances of two companies each made proposals, and
Ford Motor Co. bid alone. As expected, Hyundai Motor Co.,
which already controls more than 70 percent of the South
Korean market, and DaimlerChrysler AG of Germany announced
a strategic alliance that executives from both companies
vowed would endure even if they failed in their joint bid
for Daewoo Motor. General Motors Corp. and Fiat SpA, 10
percent owned by GM, submitted a joint proposal for
creating a company that would take over the domestic assets
of Daewoo Motor as well as most of its foreign entities.

"Today is a day of partnership," said David Snyder,
executive director of Ford's Asian-Pacific new business
investment, after filing the bid for Ford. "Our preferred
partner is Daewoo."

All of the contenders stressed their desire to rebuild
Daewoo as a powerful motor vehicle manufacturer, but none
would reveal how much they were willing to pay to get it.

A foreign financial adviser to Hyundai Motor Co., insisting
that his name not be used, said he believed that $5 billion
was the most that any of the bidders would offer. It was
not clear, however, the extent to which the bidders were
willing to take over Daewoo Motor's liabilities, estimated
at around $15 billion

"The investment community is going to get very uneasy about
any bid over $5 billion," said the adviser. "You would see
the value of their stocks going down."

The battle could help tip the balance in a contest not just
for a significant portion of the Korean market but also for
sales of motor vehicles throughout Asia.  The first round
of the battle could be decided as early as Friday, when the
creditor banks that have taken over Daewoo Motor are
scheduled to decide on two "finalists."

An official of the committee overseeing Daewoo's
restructuring said, however, that that number had been set
after all five companies indicated they would submit
separate bids. With only three bids emerging, motor vehicle
industry officials said, the committee might decide all
three were "finalists" - and then spend the summer
comparing their offers.

Each of the bidders was eager to convince the creditors -
and Koreans avidly following a process in which national
interests are seen as a factor - that its bid was the best
not only for Daewoo but also for the country.

"This agreement provides the best possibility for Daewoo,"
John Smith Jr., chairman of General Motors, said in a
statement released at a press conference at which GM's two
top regional executives outlined the advantages of the GM
bid.

Mr. Smith cited what he called "significant synergies" for
"Daewoo, the Korean automotive industry, the Korean
supplier base and the overall Korean economy."

GM's arguments for taking over Daewoo were much the same as
the ones it advanced last year when it sought to acquire
the company without an auction after the company was taken
over by its creditors, led by the government-owned Korea
Development Bank.

GM executives have long called GM the logical choice to buy
Daewoo Motor. GM owned 50 percent of the company from 1978
to 1992 but sold the stake back to Daewoo after strong
disagreements with Kim Woo Choong, the founding chairman of
the Daewoo group, over an expansion program that they
believed was reckless.

GM's decision to present a joint bid with Fiat, however,
came as a surprise. A statement issued by the two companies
said that GM would be the largest shareholder in a new
company that would be formed if its bid were successful.
Fiat SpA would own as much as 20 percent, and the balance
would be divided among "the creditors and other
constituents of Daewoo," the statement said.

But GM now faces strong competition for Daewoo from the
combined Hyundai-DaimlerChrysler bid.  Hyundai's alliance
with DaimlerChrysler resolved one of its biggest problems -
a shortage of the cash needed to take over another motor
vehicle company.

Under the deal, DaimlerChrysler will acquire 10 percent of
Hyundai Motor for $428 million and a 50 percent interest in
a joint commercial vehicle venture. The companies plan to
jointly develop and produce a small "world car" in
collaboration with Mitsubishi Motor Co.

The agreement on co-production of a small car relieved
Hyundai Motor of a major embarrassment created when
Hyundai's president, Lee Kye Ahn, revealed the plan last
month. Spokesmen for both DaimlerChrysler and Mitsubishi at
the time disavowed any knowledge of the plan. (The
International Herald Tribune  27-Jun-2000)

DAEWOO MOTORS: DaimlerChrysler only interest in parts
-----------------------------------------------------
DaimlerChrysler is launching a joint bid with South Korean
group Hyundai for Daewoo because it wants to pick out the
choicest parts of the bankrupt car maker, not because it is
interested in a full takeover, the head of the German-US
group said on Tuesday.

In an interview published in the daily Frankfurter
Allgemeine Zeitung, DaimlerChrysler chairman Juergen
Schrempp said: "Our interest in Korea is solely
in Hyundai. Daewoo, on the other hand, is a difficult case.
I've said in the past that a takeover of Daewoo is not an
option for us. We're only taking part in the bidding
process to possibly identify single attractive parts."

The group's partnership with Hyundai Motor, announced on
Monday, would give DaimlerChrysler the excellent position
in Korea that it was looking for, Schrempp said.
DaimlerChrysler on Monday forged a strategic alliance with
Hyundai Motor to bolster its presence in the fast-growing
Asian markets.

Under the agreement, DaimlerChrysler is to acquire 10
percent of Hyundai Motor for 480 billion won (428 million
dollars, 460 million euros). And the German-US giant has
the option of increasing its stake to 15 percent after
three years. The deal with Hyundai marked the second
alliance in Asia by DaimlerChrysler in recent months,
following its acquisition in March of 34 percent of
Japanese Mitsubishi Motors Corp.  (Agence France Presse
27-Jun-2000)

HYUNDAI MOTOR: Founder maneuvers to slow/stop spin-off
------------------------------------------------------
Hyundai founder Chung Ju-yung raised his equity holdings of
Hyundai Motor from 6.9% to 9.09% by purchasing a 2.19%
stake from Hyundai Engineering & Construction (HEC) Monday.

His son, Hyundai Motor chair Chung Mong-koo, has been
trying to spin the firm off from the Hyundai group, but
according to the Korea Fair Trade Commission (KFTC), the
group and its major owners, which includes the elder Chung,
must lower their shareholdings in the auto unit to below 3%
for the spin off to take place. Observers say the amassing
of shares by the Hyundai founder is a clear attempt to
prevent the spin off, which had been planned for the end of
June, and will undermine investor trust in the group.

It also flies in the face of the KFTC's wishes, as the
watchdog agency supports the spin off.  Hyundai group's
restructuring coordination committee said Monday that HEC
sold off 4.86 million shares of Hyundai Motor, which
amounts to a 2.19% stake in the firm, from its 2.8%
shareholdings, to Chung Ju-yung at share markets Monday.
Committee head Kim Jae-soo said Chung Ju-yung had no
intention of taking over Hyundai Motor, but had increased
his stake in the firm to help the spin off move forward.
Kim went on to say that the Hyundai business group would go
ahead and apply to the KFTC for the spin off of Hyundai
Motor around Thursday, June 29.

Meanwhile, the KFTC reaffirmed its position that it would
not approve the spin off unless Chung Ju-yung lowers his
stake to below the 3% maximum. One high-ranking KFTC
official said the elder Chung's move represents flat-out
defiance of the KFTC's request, adding that he seems to be
trying to provoke a fight with the watchdog agency.
(Digital Chosun  26-Jun-2000)

SEOUL BANK: Revamping ahead of sale
-----------------------------------
Seoul Bank, one of Korea's top three lenders, is shaking up
its management team in preparation for a sale, most likely
to an international bank, by the end of 2001.

The Korean bank's new president, a former Deutsche Bank
executive, said he's bringing in a former Citibank manager
and a Korea Development Bank official to help reorganise
the state-run bank so that the lender will be ready for
sale next year.

"It's like trying to turn a tube radio into a very good
transistor radio," 50-year-old Kang Chung Won said in an
interview. "The circuits and control system need to change.
The hierarchy has to be fixed. I don't think Korean banks
have done a very good job with this so far."

Seoul Bank was one of the first banks to be bailed out and
taken over by the Korean government in 1998 following the
nation's financial crisis. The government regards its sale
as a key ingredient in its bid to regain international
confidence in Korean banking.

Two to three potential buyers, including a US bank, have
already approached the commercial lender, but Seoul Bank
hasn't yet started negotiations with any of them, Mr Kang
said. For the moment, the bank is focusing on putting in
place a new operational and management structure.

To replenish its capital resources, Seoul Bank plans to
issue US$30 million (HK$234 million) in global depositary
receipts in Europe and the United States early next year,
Mr Kang said.  Much of the advice on Seoul Bank's
reorganisation will come from Deutsche Bank, which the
government retained in April as an adviser after a two-year
search to find a buyer failed. Deutsche Bank, Europe's
largest, will help upgrade Seoul Bank's operations and
management and is now reviewing its finances, Mr Kang said.

"Implementing international standards and credit
management, this is where Deutsche Bank's expertise will
come in," he said.

Next month, three Deutsche Bank executives will join Seoul
Bank for one year. They will head the retail, small to mid-
size companies and corporate credit risk management
divisions, and will train Seoul Bank employees in
international risk management operations. Korean banks'
indiscriminate lending practices were one reason the
government was forced to request a record US$57 billion
bailout from the International Monetary Fund in late 1997.

Other management changes include the appointment of H D
Chang, a former Citibank manager, as chief operating
officer. David Warner, a director at state-controlled Korea
Development Bank, will join as the chief financial officer.
Mr Warner was a contender to become Seoul Bank's president
in May. A new chief credit officer will join from Seoul
Securities.  (Hong Kong I-Mail  28-Jun-2000)


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

NALURI BHD: Signs rehab pact, awaits gov't approval
---------------------------------------------------
Naluri Bhd has signed an agreement with its creditors to
restructure its RM950 million debt and is waiting for the
regulatory authorities' approval.

The company's executive chairman Tan Sri Tajudin Ramli says
the plan, brokered by the Corporate Debt Restructuring
Committee (CDRC) and signed on May 14, was sent to
regulatory authorities on June 14.

"The plan allows us until 2002 to do some of the things we
agreed (under the plan)," Tajudin tells reporters after the
company's annual general meeting today.

Under the restructuring plan, Naluri has two years to
settle its debts. It is expected to divest some of its land
and assets to do so.  However, Tajudin says the divestment
might not be necessary if the group has enough revenue
inflow over the next two years. He adds that Naluri has not
identified any buyers for its assets.

He also quashed persistent market talk that one of the
assets Naluri could be divesting is a portion of its 29.1
per cent stake in Malaysia Airlines (MAS).  He says Naluri
was not involved in any discussions with airport operator
Malaysia Airports Bhd (MAB) whereby the latter would take a
stake in the national carrier.

On Naluri's e-commerce plans involving its dot.com start-up
Trifiniti Networks Sdn Bhd, Tajudin says the Finance
Ministry has given its approval for MAS to inject some of
its assets into Trifiniti. MAS' management has to seek
approval from the Finance Ministry, which holds a golden
share in the airline, on major management decisions.

However, Naluri and MAS have yet to identify the assets to
be injected into Trifiniti. The latter is a subsidiary of
Naluri but is expected to divest its shares to
telecommunications group Technology Resources Industries
Bhd and MAS. It is also looking for foreign partners.

Tajudin says plans are on course for the group to set up
Naluri's planned Subang International Aviation Park (SIAP)
as the government has given the green light for the project
to go on.

"We are now talking to the Land Office and relevant
authorities," he says.

He expects a mutually-beneficial partnership between SIAP
and the National Exhibition and Convention Centre (NECC),
which will be built on the site of the old international
airport in Subang by MAB.  Speculation had been rife that
the SIAP project might not take off as the land that had
been earmarked for it was given to MAB to develop the RM1
billion NECC.

However, Prime Minister Datuk Seri Dr Mahathir Mohamad said
last month Naluri could have another piece of land near the
old airport for the aviation park project.  Commenting on
the airline alliance, which MAS is looking into, Tajudin
says: "We are in discussion with the three groups. at a
detailed level."

The three global groupings include the Wings Group led by
Dutch national carrier KLM, the Swissair-led Qualiflyer
Group and the American-British One World alliance. Tajudin
declines to reveal the name of the airline alliance MAS
wants to join. (The Edge  27-Jun-2000)

NALURI BHD: Not planning to sell MAS stake
------------------------------------------
Although selling a part of its stake in Malaysia Airlines
(MAS) is an option in Naluri Bhd's debt restructuring
exercise, such a sale may not necessarily happen, said its
chairman Tan Sri Tajudin Ramli.

Tajudin told a press conference after Naluri's AGM in Kuala
Lumpur yesterday that there were other assets within the
group which could be sold to pay off its debts by mid-2002.
Of the group's total debts of RM1bil being considered under
its debt restructuring plan, RM890mil is owed by Naluri and
the rest by its subsidiaries.

At this juncture, Naluri has not decided which asset to
dispose of as agreed under an agreement reached with its
creditors to settle amounts due by mid-2002. The agreement
was signed on May 15.

On plans by MAS to join a global alliance, Tajudin, who is
also the national carrier's chairman, said there was no
deadline to abide by but he wanted it to happen as soon as
possible in order to plan the airline's operations.
Tajudin holds a 47.41% interest in Naluri, which owns a
29.09% stake in MAS. (The Star Online  27-Jun-2000)

PAN PACIFIC ASIA: Provides RM330M for doubtful debts
----------------------------------------------------
When Pan Pacific Asia Bhd (PPAB) provided a whopping RM330
million for doubtful debts in its timber operations that
wiped out the group's accumulated profits of RM277 million,
it jolted the shareholders and investors.

Frederick Ting, its newly appointed chief executive
officer, attributes the disappointing performance to poor
management and inadequate credit controls in its timber-
logging units.  Ting says that the bulk of the provision
was made for the chunky debts of "less than 12" main
parties. The group has begun legal proceedings to recover
from "all the doubtful debtors without exception". He
declined to comment on the chances of recovery.

"At the operating level, losses from our timber business
was only RM9 million. But the management has voluntarily
chosen to clean up the balance sheet and start afresh. We
have to move on and we can't do that if we are encumbered
by so much debt."

The group is also in discussions with its creditors to iron
out a scheme in order to reduce its borrowings. The scheme
will likely entail the "usual instruments" of capital
restructuring, adds Ting.  The way forward for the group is
a re-focus of its activities. Ting, who has already
embarked on a "rationalization and cost-cutting exercise"
for the group's timber division plans to further downsize
and disengage from timber activities.

"We will be divesting our timber operations although that
may be easier said than done. It takes time to find buyers,
so in the meantime we will maintain our interests but scale
down operations. The outlook for timber is still not
attractive. Fortunately, we have a stockbroking unit and
this is where the new focus of the group will be."

He believes that the path to the group's revival rests in
its ability to maximize resources and returns from its
"crown jewels", and that is its Johor-based stockbroking
unit, Peninsula Securities Sdn Bhd.  Ting says that
Peninsula Securities is well poised to take the group on a
recovery path. The stockbroking company enjoys a "one to
two" per cent market share in Johor and has been
"profitable even during the recent financial crisis."

"Our stockbroking unit has been very successfully managed
with clearly defined operational and credit control
policies. It does not have significant doubtful debts."

Last month, PPAB created a minor stir when it rescinded its
earlier agreement to sell the wholly-owned stockbroking
unit to OSK Holdings Bhd for RM225 million or around 1.8
times net tangible asset value of Peninsula Securities.

"Our agreement with OSK was mutually terminated. We had to
do withdraw as the pricing cap set under the first round of
consolidation rules was 1.5 times net tangible asset. This
meant that OSK would not be able to pay us RM225 million as
that would be above the official cap."

Although the Securities Commission had recently removed the
cap on pricing, PPAB has already entered into a merger plan
with Kumpulan Fima Bhd. Under the merger plan, Peninsula
Securities and Fima Securities Sdn Bhd will be injected
into a new company.

"We consider ourselves lucky to find a merger partner in
Fima Securities. Since the merger will not involve cash, it
will not be a strain on us. A new company, which we propose
to name Peninsula Fima Securities Group Bhd, will be
formed. PPAB will hold 65 per cent and Kumpulan Fima 35 per
cent."

Ting says that the merger will enable both parties to tap
into synergies to build up a formidable team.  "Our niche
is in Johor while Fima Securities has secured a good market
base in Kuala Lumpur, which is the main catchment area for
the securities business. Furthermore, Fima Securities has
undergone its own debt restructuring scheme and will be
entering the merger with a cleaned-up book."

Ting also welcomes recent moves by the authorities to relax
the conditions for merger exercises in the stock broking
industry.  "The removal of the year-end deadline gives us
more time to look for suitable partners. There are no
concrete plans yet but we are looking to add one more stock
broking firm to our newco. Easing of chain listing
requirements also enables us to consider listing our
stockbroking unit, if conditions are favourable."

Ting, who has an 18-month turnaround plan for PPAB, says
that his mission is to re-strategise and re-energise the
group's business activities.  "At the end of the day, what
I want to turn the group around into a viable concern and
regain the confidence of shareholders by building back
value into their investment."  (The Edge  27-Jun-2000)

PUNCAK VISTA SDN: Still in default on loan
------------------------------------------
United Engineers Malaysia Bhd said its associate company
Puncak Vista Sdn Bhd is still in default for principal and
interest payments on its 363.0 mln rgt syndicated term loan
and convertible bank guarantee facility, and on its 30.0
mln rgt revolving credit facility.

Puncak Vista has fully utilised its term loan facility and
a total of 6.115 mln rgt of its revolving credit facility
as of end-May, United Engineers said in a statement to the
Kuala Lumpur Stock Exchange.  The principal and interest
due and payable for the term loan as of end-May were 363.0
mln rgt and 110.017 mln rgt, respectively, while the
principal and interest due and payable for the revolving
credit facility as of end-April were 6.115 mln rgt and
1.699 mln rgt, respectively.

Both loan facilities are secured against Puncak Vista's
32.3 acres of land in Kuala Lumpur and a debenture over all
its assets.  The debenture empowers the agent bank for the
facilities to appoint a receiver in the event of default,
but no such notice has been received so far, United
Engineers said.  (AFX News Limited  27-Jun-2000)

TRANS CAPITAL HLDGS: Rehab agreement finalized
TRANS CAPITAL SDN: Rehab agreement finalized
----------------------------------------------
The Corporate Debt Restructuring Committee (CDRC) has
successfully assisted Trans Capital Holdings Bhd (TCHB) and
its wholly-owned subsidiary Trans Capital Sdn Bhd (TCSB) to
finalise a debt restructuring agreement with their lenders
involving an outstanding debt of RM185.6mil.

The CDRC said TCHB had submitted an application on the
restructuring to the Securities Commission (SC) on May 25.
The revamp aims to restructure the total principal debts
and accrued interests owed by TCSB into term loans and
unlisted redeemable convertible cumulative preference
shares (RCCPS) convertible into new TCHB ordinary shares of
RM1 each.

Under the agreement, the lenders have two options:
The first will see 50% of the principal amounts of the
existing debts to be convertible into 5-year term loans,
repayable by eight equal semi-annual installments. The
balance will be satisfied by the issue of RCCPS "A," RCCPS
"B" or RCCPS "C".  Under the second option, 100% of the
debts shall be satisfied by the issue of RCCPS "B'' to the
lenders. (The Star Online  27-Jun-2000)


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

URBAN BANK: DoJ to fast-track charges vs. officials
---------------------------------------------------
The Department of Justice (DoJ) said Monday it will fast-
track the financial fraud charges filed against five
officials of the debt-ridden Urban Banking Corporation
(Urban Bank) by the Bangko Sentral ng Pilipinas (BSP) and
Philippine Deposit Insurance Corporation (PDIC).

This after BSP-PDIC probers found out that Urban Bank chief
executive officer Teodoro Borlongan, senior vice president
Nida Santos, vice president Cecilia Magugat, assistant vice
president Rene Colin Gray and bank teller Marie Cecille
Lopez have initiated the "unauthorized pre-termination and
eventual encashment" of an fixed-earning account which was
suppose to mature in February 2004.

The BSP-PDIC probers said the five officials unlawfully
took P5 million from the time deposit account of former San
Miguel Corporation president Francisco Eizmendi, Jr. and
his wife Aurora before the bank declared a bank holiday.

Justice Secretary Artemio Tuquero said the formation of
DoJ's 10-man Task Force on Financial Fraud headed by Chief
State Prosecutor Leonardo Guiyab, Jr. is expected to
expedite the investigation.  Tuquero further explained that
the Justice department will include more Urban Bank
officials as the BSP-PDIC preliminary assessment indicates
that some transactions were unscrupulously done.

"There were previous transactions that are considered
unsound and unsafe banking practice that may warrant the
prosecution of its (Urban) officials for fraud," Tuquero
said.

Meanwhile, the Justice department said they will pursue the
case on all bank officials, including former Philippine
president and Urban Bank chairman emeritus Fidel V. Ramos,
if evidence shows that they have violated banking
regulations.

"No, we are not bound by the complaint (that has yet to be)
filed by the BSP. We go by the book, by the evidence. They
can charge this person, but we can clear him if there is no
evidence. And we can criminally charge even those whose
names were not mentioned in the complaint," Guiyab said.

Earlier, it was reported that Ramos withdrew a money from
the Ramos Peace and Development Foundation before or after
the Holy Week which was alleged to have partly caused the
bank holiday.  However, the former president denied the
allegation, saying that, "the insinuations that I drew a
big amount of money is all rumor and speculation. I think
you got it all wrong. I'm not an official of the bank in
the sense that I help manage and operate the bank," Ramos
said.

The DoJ issued a hold-departure order early last month
against Urban Bank chairman Arsenio Bartolome III , Teodoro
Borlongan, Corazon Bihasa and Renato Claravall.  The BSP
ordered Urban Bank's closure on April 26 in the wake of
heavy cash withdrawals by depositors. The bank was placed
under the receivership of the government's Philippine
Deposit Insurance Corporation (PDIC). (ABS/CBN News Channel
26-Jun-2000)

VICTORIAS MILLING CORP.: Needs new partner, capital
---------------------------------------------------
Cash-strapped Victorias Milling Co. Inc (VMC) said Monday
it needs a P300-million capital infusion from a new
investor to help the company revive its operations.

This after Government Service Insurance System (GSIS), a
creditor of VMC, filed a motion before the Securities and
Exchange Commission (SEC) to allow Victorias' management
committee to submit an alternative rehabilitation plan
following a failed bid to sell 53.5% of VMC's outstanding
capital stock.

According to the new rehabilitation plan, VMC needs a new
investor that would infuse some P300 million to the sugar
miller.  However, VMC president Manuel Ma¤alac offered his
own rehabilitation plan to the SEC which would convert
P3.91 billion of debts into equity and the restructuring of
P1.229 billion debts over the next 15 years.

Ma¤alac's plan, which is being opposed by VMC's management
committee, also calls for the conversion of accrued
interest amounting to P1.01 billion into bonds. Ma¤alac
said the alternative plan is the "logical rehabilitation
plan to put back Victorias in a financially, healthy,
operating condition and to resume its leading role in the
sugar industry."

He said that in developing the plan, the management took
into consideration the present condition of the country's
sugar industry and the development in the international
sugar market.  But VMC's mancom said its new plan to revive
the sugar miller will overrule Ma¤alac's plan since it is
the only body authorized by the SEC to draft a
rehabilitation plan.

The mancom said the SEC should reject the plan submitted by
Victorias' since this is being opposed by majority of VMC's
creditors.  Under the SEC Rules of Procedure on Corporate
Recovery, no modification or alteration of an approved
rehabilitation plan shall be allowed if such modification
is opposed by a majority of a class of creditors.

The mancom said Ma¤alac's proposal for a P400-million loan
at 10% interest rate payable in three years is futile, if
no creditors would grant the loan.  The cash-strapped sugar
miller's debt has grown to P6.5 billion from P5.18 billion
after the company failed to pay interest dues to creditors.

Early this year, VMC failed to auction off a controlling
53.35-percent stake from interested parties such as JG
Summit Holdings Inc., Central Azucarera de Don Pedro, and
Central Azucarera de Tarlac.   VMC's financial woes started
in 1997 after the company defaulted on more than P3.4
billion owed to 32 banks due to higher operating cost and
weak sugar prices. (ABS/CBN News Channel  26-Jun-2000)


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

CLOB: EffCap offer acceptors to get personalized trade data
-----------------------------------------------------------
CLOB investors who accepted Malaysian firm Effective
Capital's staggered release proposal will soon get
personalised schedules for trading their shares on the
Kuala Lumpur Stock Exchange (KLSE).

According to a statement from Effective yesterday, the
schedules were posted on June 26 and Clob investors should
receive them soon.  It said Clob investors should, upon
receipt, confirm with their stockbrokers or other advisers
that their release schedules are in order.

According to Effective's timetable, shares will be released
weekly in equal batches over 56 weeks, starting from July
3. Non-shares such as warrants will be released over a 16-
week period.  The release of all shares and non-shares to a
Clob investor is subject to a minimum of 50 units per week.

Effective said those who had not received their schedules
by July 10, or found their schedules incorrect, should
contact the company in Malaysia via email at
ira@effectivecapital.com.my or by fax at (603) 457-6800.
Investors with any other questions on Effective's proposal
can call its Singapore hotline at 236-9388 or fax queries
in at 236-9428.

Effective added yesterday that Clob investors will receive
a certificate which exempts them from the exit levy imposed
on repatriation of funds from Malaysia arising from sale of
shares. Clob investors must produce this certificate to
their repatriating bank in order to qualify for the
exemption, it added.

Confirming that all the shares belonging to the 93.8 per
cent of Clob investors who had accepted its offer had been
migrated into investors' Central Depository System
accounts, Effective said the shares are ""placed under
suspense'' and will be released for trading from July 3.
The company also advised Clob investors to check with their
stockbrokers that their shares are available for trading
first, before entering into any trades.
Meanwhile, Clob investors who want to trade odd lots of
less than 1,000 shares can still do so, said Malaysian
brokers interviewed by The Straits Times yesterday.  But
such investors would have to be prepared to accept lower
prices than those posted for the standard lots, they said.

According to brokers, there is a separate board on the KLSE
for the trading of such lots. It covers all listed shares
on the KLSE and operates on a willing-buyer, willing-seller
basis.  Clob investors who want to trade odd-lots need only
call their Malaysian brokers and state how many shares they
want to buy or sell, brokers added.  They will then be
quoted the best price available on the odd-lot market --
which is ""traditionally 6 to 8 per cent" lower than the
price of standard lots because of the relative
""illiquidity of the market."   (Straits Times  28-Jun-
2000)

JURONG CEMENT: Plunges into red
-------------------------------
Jurong Cement has plunged into the red with losses of
S$5.8mil, compared with a S$7.2mil profit last year, and
it expects another testing time this year, according to a
Singapore Business Times report.

For the 12 months ended March 31, 2000, the company's
turnover sank 21% to S$77.5mil.  As a result of intense
competition, operating profit was more than halved to
S$5.1mil, compared with S$14.2mil in the previous year.

The operating performance of associated companies showed an
improvement. But profit margins did not improve
correspondingly due to unrealised exchange losses and an
increase in provisions for long-outstanding doubtful debts
arising mainly from associated companies operating in
China, the company said. (The Star Online  27-Jun-2000)

THAKRAL CORP.: Reaches standstill pact with banks
-------------------------------------------------
Thakral Corporation, which has been struggling under a
mountain of debt, has entered a standstill agreement with
most of its creditor banks to restructure its loans.

Under the agreement, the banks will not demand, declare a
default or bring forward the maturity dates of the loans
owing for a period of six months from June 15.  The
consumer electronics distributor said in a statement
yesterday that all loan facilities would be maintained to
ensure that Thakral could continue its business operations
uninterrupted.

However, as part of the agreement, Thakral is required to
repay at least US$30 million (S$52 million) to the banks by
July 31. During the six months moratorium, Thakral has to
also develop a plan to restructure its bank facilities that
includes a recapitalisation of the company.  Thakral has
close to $495 million of debt on its books, most of it owed
to the creditor banks.

The agreement announced yesterday covers more than three-
quarters of those bank loans. The company, which does 95
per cent of its business in China and Hongkong, said in
January that its financial adviser Arthur Andersen
Associates had helped it to put together an action plan to
restructure its debts.  The plan would see the company
trimming its debt by disposing of non-core assets and
reduce its working capital needs through more efficient
management of inventories and receivables.

It said yesterday that it had $84 million in cash as at
June 15 and sufficient working capital to continue
operations.  Thakral's woes first came to light in June
last year when it revealed that it had suffered a massive
$218 million loss for the year ended March 31, 1999.  The
loss was due mainly to its hedging activities for its yen-
denominated purchases as well as losses from its trading
operations.  About $160.3 million was lost on its "over-
hedged" position against the yen after the Japanese unit
rose unexpectedly against the US dollar in January last
year.   (Straits Times  28-Jun-2000)


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

ADVANCE PAINT &CHEMICAL: Reports debt rehab progress to SET
-----------------------------------------------------------
Advance Paint & Chemical Public Company Limited (APC)
director Narumol Punnakitikashem has reported the progress
of the company's debt restructuring to the Stock Exchange
of Thailand. After submission of the proposed plan to all
creditors, the company could not obtain all creditors'
approval in the second vote.

The company is now in the process of negotiating with
foreign investors who are interested in this business and
with each of company's creditors accordingly. The company
expects to take at least another 6 to 12 months to resolve
the company's debt. (Stock Exchange of Thailand  26-Jun-
2000)

ALFA APPAREL: Court approves rehab plan
ALFA SPINNING CO.: Court approves rehab plan
ALFA PROCESSING CO.: Court approves rehab plan
ALFA TEXT INDUSTRIES: Court approves rehab plan
HI-PETCH EQUIPMENT CO.: Court approves rehab plan
THAI ABS CO.: Court approves rehab plan
THAI PACKAGING INDUSTRY: Court approves rehab plan
TPI OIL CO.: Court approves rehab plan
--------------------------------------------------
The Central Bankruptcy Court yesterday approved business
rehabilitation plans of eight companies, including two TPI
Group subsidiaries, with combined debts of 25.4 billion
baht.

The approvals represented a single-day record for the year-
old court, reflecting good advance preparation and improved
co-operation between debtors and creditors, officials said.
The two subsidiaries of the Thai Petrochemical Industry
group are TPI Oil Co and Thai ABS Co. Their requests were
jointly filed by Thai Petrochemical Industry Plc, their
parent firm, and Effective Planner Co, the planner of TPI's
business rehabilitation plan.

TPI Oil Co owes 5.95 billion baht to 185 creditors. Of the
amount, 3.13 billion baht was lent by its parent company.
Thai ABS Co owes 162 creditors a total of 11.03 billion
baht, of which 2.35 billion was lent by the parent firm.
The court appointed Effective Planner Co to manage the two
companies' rehabilitation procedures.

Also winning court approval yesterday was Thai Packaging
Industry Plc, which owes 40 creditors a total of 2.02
billion baht.  Earlier, two of its creditors-Ruam Sap
Charoen (1997) Co and Ruam Sap Phaiboon (1997) Co-had
objected to the plan. However, they withdrew their
objections yesterday. The court appointed NSP Logistics
Consultant Co as the planner.

Hi-Petch Equipment Co, which had on its own initiative
requested a plan to restructure 2.44 billion baht owed to
130 creditors, also won court approval. Thai Mui and
Associate Co was the approved planner.

The four other companies winning court approval were
textile firms under the umbrella of the Alfa Group.
They are Alfa Apparel, owing a total of 239 million baht to
10 creditors; Alfa Spinning Co, owing 1.71 billion baht to
19 creditors; Alfa Processing Co, owing 950 million baht to
36 creditors, and Alfa Text Industries, owing 1.1 billion
baht to 23 creditors.  The court appointed Alfa Planner Co
to handle the rehabilitation of the four companies.

The court also took up the case of Petch Phraya Hospital
Co, which owes 363 million baht to 138 creditors. Four of
its creditors had objected to the plan. However, no
representatives of the four creditors showed up in court
yesterday, so the hearing was adjourned until Thursday.
(Bangkok Post  27-Jun-2000)

MODERN HOME DEVELOPMENT: HKR Group to take stake
------------------------------------------------
HKR International, owner of the Discovery Bay development
near Hong Kong's planned Walt Disney theme park, has won a
bid to buy a large stake in ailing Thai property developer
Modern Home Development.

The group's HKR Asia Pacific unit signed a non-binding
agreement with Modern Home on Friday, the Thai company told
the local stock exchange. It didn't say how much of the
company HKR plans to buy.  HKR agreed to pay more than 300
million baht for its stake, newspapers reported last
Thursday, citing an unidentified person among the bidders.

Modern Home, which is behind on 5.6 billion baht of debt,
will also ask creditors to convert part of the debt into a
quarter stake in the company. The developer's founding
Angkanawatana family will see its stake diluted to 2
percent from 40 percent, a local publication reported.

The company will hold a shareholders' meeting on Friday to
seek approval for the HKR investment and the debt
restructuring plan.  Modern Home's flagship project is the
225-acre Talad Thai wholesale food market north of Bangkok
International Airport.  The company reported a net loss of
2.51 billion baht last year as sales plunged 91 percent to
91 million baht.

Since the property market slumped in 1997 following the
devaluation of the baht and a subsequent recession, a few
US companies have bought major stakes in Thai developers,
including Lehman Brothers Holdings, Starwood Capital Group
LP and funds controlled by financier George Soros.
(Business Day  27-Jun-2000)

TANAYONG: Posts Bt3B net loss
-----------------------------
Tanayong said its board had resolved on June 23 to suspend
dividend payments for 1999; to re-elect Sudha Liptawat and
Anat Arbhabhirama as directors; and to set the
shareholders' meeting for July 27.

It reported audited net losses of 3bn bt for the year
ending March 31 compared with losses of 4.3bn bt for the
previous year.  Increased revenues from sales of
condominium projects, forex gains, higher income from
rentals, service fees and interest income had contributed
to improved performance.  (Bangkok Post  27-Jun-2000)

TCJ MOTOR: To propose debt restructuring scheme
-----------------------------------------------
TCJ Motor will hold an extraordinary shareholders' meeting
on July 28 at which it will propose to issue convertible
debentures worth 385m bt to restructure the debt; to
increase registered capital by 385m bt by issuing 38.5 m
new shares (10-bt par), bringing registered capital to 635
mn bt. The convertible debentures will be offered to its
creditors: DBS Thai Danu Bank, Siam Commercial Bank, Siam
City Bank, and Krung Thai Bank. (Bangkok Post  27-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

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Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
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Jover and Cristina Pernites, Editors.

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

This material is copyrighted and any commercial use, resale
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                     *** End of Transmission ***