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

                  A S I A   P A C I F I C

         Thursday, July 6, 2000, Vol. 3, No. 130

                         Headlines


* A U S T R A L I A *

HIH INSURANCE: Shareholders seek management change
LION NATHAN: Looking for China partners
THE SATELLITE GROUP: Founder bails, to sell 20% stake


* C H I N A  &  H O N G  K O N G *

PAM & FRANK INT'L HOLDINGS: Progress on winding up to HKSE
SHANGHAI NIANHUA CO.: Adobe Systems gets court judgment
S.MEGGA INT'L HLDGS. LTD: Noteholder meeting confirmed


* I N D O N E S I A *

BANK BALI: HOR declines recap okay till legal tiff settled
BANK DAGANG NASIONAL INDO.: IBRA files for its bankruptcy
BANK DANAMON: Gov't issues bonds to recapitalize
BANK NEGARA INDONESIA: Gov't issues bonds to recapitalize
DJAJANTI GROUP: IBRA files for its bankruptcy
INDOCEMENT TUNGGAL PRAKARSA: Creditors okay US$1B debt pact
ONGKO GROUP: IBRA files for its bankruptcy


* J A P A N *

ASTEL KANSAI CORP.: Parent seeking debt waiver  
BANK OF TOKYO-MITSUBISHI: BOJ policy drops stock               
NTT DATA CORP.: BOJ policy drops stock                        
PROMISE CO.: BOJ policy drops stock                            
SOFTBANK CORP.: BOJ policy drops stock


* K O R E A *

DAELIM INDUSTRIAL: Buys back bonds before maturity
DAEWOO MOTOR: Hyundai,GM not ready to call it quits yet
DONGAH CONSTRUCTION: Former head trying to re-takeover
KOREA AEROSPACE INDUSTRIES: Issues $25M in FRNs
SEOUL INVEST.TRUST MGMT.CO.: To be recapitalized


* M A L A Y S I A *

KIG GLASS INDUSTRIAL: Finishes two years of being in red
MBf NORTHERN SECURITIES: Sold for cash
MIHARJA DEVELOPMENT: Special administrator appointed
TAIPING SECURITIES SDN: Sold for cash
TIME dotCOM: Team to buy 30 percent stake
UNCANG EMAS SDN: Special administrator appointed


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

METRO.BANK AND TRUST CO.: Central bank to probe rule break  
METRO.BANK AND TRUST CO.:  Auditor criticizes ops
PHILIPPINE NAT.BANK: Falling book value moves sale up
PILIPINO TELEPHONE CORP.: Marubeni wants cash payment
URBAN BANK: Justice Dept. starts probe on execs today
URBANCORP INVESTMENT INC.: PDIC files P5B claim


* S I N G A P O R E *

SEE HUP SENG: Refinancing its borrowings


* T H A I L A N D *

BUMRUNGRAD HOSPITAL: Reports on debt-restructuring plan
INTER FAREAST ENGINEERING: Files rehab plan
MODERN HOME DEVELOPMENT: Clarifies debt rehab to SET
ONPA INT'L PLC:  To complete debt restructuring plan
PRECIOUS SHIPPING: Signs $25M loan deal
SIAM CITY BANK: Foreign and local bidders to be allowed
SIAM GENERAL FACTORING: Signs debt restructuring agreement
STAR BLOCK GROUP: Files rehab plan
THAI DURABLE TEXTILE: Progress on debt restructuring plan
THAI ELECTRONIC INDUSTRY: Progress on financial rehab
THAI LUBE BASE: Ailing oil firm awaits debt verdict
UNICORD PLC: Files rehab plan


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

HIH INSURANCE: Shareholders seek management change
--------------------------------------------------
HIH Insurance shareholders attributed the debilitating
slide in market capitalisation and poor share price
performance to top management, causing them to seek to
ouster of chief executive Mr Ray Williams.

According to one shareholder, Mr Williams should not carry
all the burden of the poor share price performance, and
other managers should also move on.  "No-one is really
happy with Ray Williams' performance ... but there are
other senior managers also at fault. There has to be
wholesale changes at the top of HIH.

"The business has no clear strategy. It has had a poor
overseas expansion policy and no real understanding of IT.
And it's not only investors that are concerned. Middle-
level employees are also worried about where they can go in
the company."

The company's four largest shareholders are Maple Brown
Abbott with more than 8 per cent of shares on issue,
Mercantile Mutual with close to 6 per cent, family
interests associated with HIH director Mr Rodney Adler
(around 5 per cent) and a group comprising of management
and staff (also around 5 per cent). (Australian Financial
Review  04-July-2000)

LION NATHAN: Looking for China partners
---------------------------------------
Brewer Lion Nathan signalled yesterday it planned to expand
its reach into the large Chinese market and was in talks
with potential partners.

Lion Nathan chief executive officer Gordon Cairns said at a
business lunch that the company already had a dominant
position in the Yangtse River Delta region but was looking
at extending its reach, possibly in partnership with other
mainland brewers.

"We have been in discussions with a number of Chinese
brewers as to how to do that," Mr Cairns said.

Confidentiality agreements prevented him providing more
details of likely arrangements, he said.  "There are a
whole spectrum of possible arrangements. We could toll
brew, we could have a joint venture, we could produce under
licence," he said.

Lion Nathan has A$282 million (HK$1.31 billion) in assets
in China, but its business there was yet to turn a profit,
Mr Cairns said, adding that he was uncertain when the China
business would become profitable.  Nevertheless, the
company's performance to date remained on track for a good
full-year result.

"Our market share is increasing which is good and our
profits will be in line with forecasts."

According to Barra Global Estimates, analysts have forecast
a pre-abnormal net profit of A$136.7 million with a range
of A$133.4 million to A$144.5 million. Lion Nathan earlier
this year reported net profit of NZ$97.1 million (HK$354.4
million) for the six months ended February 29, 2000.
However, Mr Cairns noted the company was concerned about
the potential for an Australian economic slowdown.

"That is why we have to be very assiduous with our cost
reduction," he said.  (Hong Kong iMail  05-July-2000)

THE SATELLITE GROUP: Founder bails, to sell 20% stake
-----------------------------------------------------
Founder and former managing director of gay media and
property company The Satellite Group Greg Fisher plans to
sell his 20 per cent in the company after resigning earlier
this week.

Mr Fisher told The Australian he would sell the stock over
time and concentrate on personal investments.  The group
owns eight gay and lesbian newspapers and magazines, as
well as property, hotels and a gay internet portal.

Since listing its shares at 50c each last September as the
world's first pink float, the company has failed to meet
prospectus forecasts. Shares were steady at 15c yesterday.
Mr Fisher is the largest shareholder in the group and his
decision to sell follows that of fellow 20 per cent holder
Jonathan Broster, who sold to a Hong Kong group last week.

"I'm not going to let a great deal of my wealth be tied up
in a company over which I don't have control," Mr Fisher
said. "The board thought it was time for a generational
change . . . and that is how corporate life goes. It does
happen that the visionary who starts something up isn't
appropriate for the next stage of development."

Chairman Kerryn Phelps issued a statement announcing the
resignation of Mr Fisher "for personal reasons", but was
otherwise unavailable for comment.  CEO George Markos said
there would be no other board or senior management changes
and the company would continue in the same strategic
direction as under Mr Fisher.  (The Advertiser  05-July-
2000)


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

PAM & FRANK INT'L HOLDINGS: Progress on winding up to HKSE
----------------------------------------------------------
As announced on June 5, 2000, the hearing of the Winding up
Petition against Pam & Frank International Holdings (the
Company) scheduled for that day was further adjourned until
29 June 2000. On 29 June, the hearing again was adjourned
for setting a two-day hearing. The Court has now fixed
hearing dates of 16-17 January 2001.

The basis of Li Mei's claim is that it made certain loans
to the Company of about US$1.3 million, which debt the
Company is disputing. (Hong Kong Stock Exchange  05-July-
2000)

SHANGHAI NIANHUA CO.: Adobe Systems gets court judgment    
-------------------------------------------------------    
US software firm Adobe Systems has successfully sued a
Shanghai computer firm for copyright infringement, China
Radio International (CRI) reported on Wednesday.

A Shanghai court ordered the defendant, Shanghai Nianhua
Company, to pay 150,000 yuan (about HK$141,249) to Adobe
Systems, for violating the firm's copyrights on its popular
image processing software.  This is believed to be the
first time that a foreign company has won a copyright
infringement lawsuit related to software on the mainland.

Since patented software is much more expensive than pirated
versions in China, it is a common practice for some local
retailers to load free unauthorised software onto computers
as a sales incentive.  According to the CRI report, Adobe
Systems employed a Beijing law firm last August to
investigate the defendant's activities.

Adobe brought Nianhua Company to court after local lawyers
purchased an Apple computer from the firm and received a
free set of Adobe software.  (South China Morning Post  05-
July-2000)

S.MEGGA INT'L HLDGS. LTD: Noteholder meeting confirmed
------------------------------------------------------
The date for the meeting of Noteholders to approve the
Noteholders' Debt Restructuring Offer has now been
finalised and will be held on 21st July 2000. The Company
distributed a prospectus containing details of the proposed
Debt Restructuring to each noteholder on Friday, 30th June,
2000. (Hong Kong Stock Exchange  05-July-2000)


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

BANK BALI: HOR declines recap okay till legal tiff settled
----------------------------------------------------------
Earlier last week the House of Representatives declined to
approve the government's proposal to recapitalize Bank Bali
at a cost of Rp 4.99 trillion until a legal dispute with
the former owner and CEO of the bank, Rudy Ramli, was
settled.

IBRA and Bank Indonesia nationalized Bank Bali last year on
the grounds that the Ramli family failed to come up with
the necessary cash requirement to finance the
recapitalization of the bank.  But Rudy filed a lawsuit
against the nationalization measure, and, surprisingly, the
Jakarta Administrative Court decided in favor of Rudy.

IBRA and the central bank have since launched an appeal,
which is still being processed.  The government and Bank
Indonesia are also seeking an out of court settlement.
The government will have to wait until September before it
can proceed with the recapitalization program of Bank Bali,
again because a new financial audit has to be completed.

The government said that each month of delay would increase
the recapitalization cost of Bank Bali by about Rp 40
billion.  Minister of Finance Bambang Sudibyo said last
week that closing down the bank was also an option.( The
Jakarta Post 04-July-2000)

BANK DAGANG NASIONAL INDO.: IBRA files for its bankruptcy  
DJAJANTI GROUP: IBRA files for its bankruptcy                 
ONGKO GROUP: IBRA files for its bankruptcy                  
---------------------------------------------------------        
Last week, IBRA filed bankruptcy suits against four
subsidiaries of the Ongko Group for failing to pay matured
debts totalling 458 billion rupiah.  

It also threatened to confiscate assets belonging to a
plantation and fishery firm, the Djajanti Group, unless it
agreed to comply with the proposed debt restructuring for
its 2.7 trillion rupiah liability.  Mr Mahmuddin Yasin,
head of the Asset Management and Investments at Ibra, also
said this week that the agency had reached an understanding
with Mr Sjamsul Nursalim, the owner of the now-defunct Bank
Dagang Nasional Indonesia.  The bank's debts to the
government amount to a staggering 28.5 trillion rupiah.  

Additionally, the owners of 25 banks liquidated by the
government last year struck a 10.5 trillion rupiah (S$2.1
billion) deal with the Indonesian Bank Restructuring Agency
(Ibra) in a bid to avoid legal sanctions.  IBRA deputy
chairman Arwin Rasyid announced at a press conference on
Monday that major shareholders of the 25 banks had signed
initial agreements to transfer assets equivalent to their
government obligations.  He did not disclose details of the
deal, but said the legal details of the asset transfer
process would be completed by September.

Of the 39 banks that were closed down last year as a result
of insolvency or violation of various banking regulations,
seven had no debt to the government; three had agreed to
pay in cash; and four had failed to reach a compromise over
the size of their obligations.  Mr Arwin indicated that the
four banks and their owners would face legal charges. The
four banks, according to Ibras figures, owed the government
3.8 trillion rupiah.

Monday was the deadline for bank owners to settle
government debts that were incurred when the Indonesian
central bank injected trillions of rupiah to bail out
failing banks at the height of the economic crisis.  In the
past, Ibra had been criticised for being too lenient in
settling the country's debt problems and too slow in
restructuring and disposing its assets.
The country's top economic ministers Kwik Kian Gie and
Bambang Sudibyo have both urged the agency to take strong
legal action against uncooperative debtors.  One big
problem for Ibra has been Indonesia's commercial courts and
laws, which some analysts say favour debtors at the expense
of creditors.  More than 80 cases have been filed in
Jakarta's court system this year, but Ibra has won only a
handful.

The planned creation of an ad hoc commercial court, a
process mandated by the IMF in exchange for continued loans
to Indonesia, might also create a more reliable judicial
system and aid Ibra's debt recovery efforts.  In the
meantime, the agency has appeared keen to take a harder
line against debtors and has reported favourable news in
recent days.

Yesterday, Ibra chairman Cacuk Sudarijanto told parliament
that the agency would take in some 7.51 trillion rupiah
between July and September, and a further 9.33 trillion
rupiah in the last quarter of the year.  (Straits Times  
05-July-2000)

BANK DANAMON: Gov't issues bonds to recapitalize
BANK NEGARA INDONESIA: Gov't issues bonds to recapitalize
---------------------------------------------------------
The government issued on Friday bonds worth Rp 60.66
trillion (US$6.97 billion) to finance the second
recapitalization of publicly listed Bank Danamon and Bank
Negara Indonesia (BNI).

The Indonesian Bank Restructuring Agency (IBRA) said in a
statement late last week that Rp 28.72 trillion worth of
bonds were injected into Bank Danamon in order to maintain
a positive capital adequacy ratio (CAR) after the
incorporation of eight smaller banks into Bank Danamon.

IBRA said that the second recapitalization of Bank Danamon
also marked the legal merger between Danamon and the eight
banks.  "This is in line with the government's commitment,
as stated in the letter of intent (loi)," IBRA said.

According to the LOI signed in May, the merger and the
second recapitalization of Bank Danamon must be completed
by the end of June.  The agency said that the operational
merger with the eight banks would be gradually completed in
early October.

IBRA said that in the first stage, Danamon would be merged
with Bank Jaya, to be followed by Bank Tiara, Bank Pos,
Bank Rama, Bank Nusa Nasional and Bank Duta, and finally
with Bank Risjad Salim Internasional.

The government nationalized Bank Danamon in 1998 and the
eight banks in 1999 because their former owners could not
provide financing to recapitalize the banks.  The
government recapitalized Bank Danamon in March 1999,
sending its CAR to beyond 4 percent, much higher than the
minimum 4 percent requirement for this year.  IBRA said
that the CAR of Bank Danamon after the legal merger would
reach 32.5 percent. (The Jakarta Post 04-July-2000)

INDOCEMENT TUNGGAL PRAKARSA: Creditors okay US$1B debt pact
-----------------------------------------------------------
Creditors of Indocement Tunggal Prakarsa, Indonesia's no.1
cement firm agreed to reschedule the company's US$1.1
billion debt.  

The agreement, with a two-year repayment holiday, would
stretch interest and principal payments over eight years.
The pact, subject to shareholder approval, also includes an
exchange of some debt for equity in the company.

The company ceased paying its creditors in July 1998.  A
debt plan must be presented at the shareholders meeting
next month.  If approved, the proposal would be sent to all
creditors for a final decision.

Under the agreement, Indocement would pay back some debt at
200 basis points over the London interbank offered rate,
while an as yet undecided amount owed to creditors would be
exchanged for an equity stake in the company, Mr Panggabean
said.  A second alternative is to offer world No 3 cement-
maker Heidelberger Zement a stake in Indocement if the
German company agrees to take on US$150 million of the
debt. (South China Morning Post  05-July-2000)


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

ASTEL KANSAI CORP.: Parent seeking debt waiver  
----------------------------------------------
Kansai Electric Power Co. has requested creditor banks of
Astel Kansai Corp. to forgive part of their loans to the
troubled PHS service affiliate, it was learned Saturday.

To support the personal handy phone system service
operator, Kansai Electric is negotiating with a group of
about 10 lenders including Sanwa Bank, Sumitomo Bank and
Industrial Bank of Japan, informed sources said.

It has asked them to waive part of their Astel Kansai-bound
loans totaling about 55 billion yen and reduce interest
payments, the sources familiar with the talks told Jiji
Press.  Since its establishment in 1994, Astel Kansai,
which serves Osaka and nearby prefectures, built up a
cumulative loss of 62.2 billion yen by March 31 amid harsh
competition with cellular phone companies.

In a bid to turn itself around, the company bolstered PHS
terminal sales to corporate users. But one Kansai Electric
official said it is difficult for Astel Kansai to reduce
its accumulated debts.  In the year ended in March, Astel
Kansai, capitalized at 25 billion yen, booked a recurring
loss of 13.1 billion yen and had 37.2 billion yen in
negative net worth at the end of the year. (Jiji Press
English News Service  01-July-2000)

BANK OF TOKYO-MITSUBISHI: BOJ policy drops stock               
NTT DATA CORP.: BOJ policy drops stock                        
PROMISE CO.: BOJ policy drops stock                            
SOFTBANK CORP.: BOJ policy drops stock                     
------------------------------------------------               
Japanese stocks fell, led by Softbank Corp and NTT Data
Corp, on concern the Bank of Japan may end its zero
interest rate policy later this year, which will lead to
higher borrowing costs for companies.

Lenders such as Bank of Tokyo-Mitsubishi Ltd also fell,
after a brokerage put in sell orders for banking shares in
the morning, traders said. Consumer finance companies also
fell, with Promise Co leading the losers.

"Many foreign investors haven't factored in higher rates
here, although local ones may have already begun to do so,"
said an investment director. "If rates go up, there could
be major selling on disappointment," he said.

The Nikkei 225 stock average finished 34.20 points, or 0.2
percent off, at 17,435.95. The Topix index of all shares on
the Tokyo Stock Exchange's first section fell 5.76 points,
or 0.4 percent, to 1,601.18. Decliners outpaced gainers
almost nine to four. Some 683 million shares traded,
exceeding the six-month average of 676 million.  (Business
Times  05-July-2000)


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

DAELIM INDUSTRIAL: Buys back bonds before maturity
--------------------------------------------------
Amid the tightening liquidity situation in Korea's
construction industry, one of the top-ranking contractors
has scrapped its company-issued corporate bonds by buying
them back before their maturity.

Daelim Industrial announced Wednesday that the company has
been writing off a total of W166.5 billion worth of
corporate bonds before their maturity since early this
year. According to Daelim, the portion of the bonds is
amongst W204.5 billion worth of corporate bonds that are
due to mature before the end of this year. Daelim paid an
additional 1%-point higher interest rate.

Industry observers cite expedited restructuring as the
reason for the company's ability to make this move. A high-
ranking official of Daelim said that his firm had an inflow
of a total of W535.8 billion from selling off its
petrochemical sector earlier this year. Daelim intends to
lower its debt-to-equity-ratio to 116% before the end of
this year from 166% as of the end of last year.  (Digital
Chosun  05-July-2000)

DAEWOO MOTOR: Hyundai,GM not ready to call it quits yet
-------------------------------------------------------
Following the June 29 selection of Ford Motor Company as
the sole priority negotiator in a three-way international
tender for ailing Daewoo Motor, the also-rans -- General
Motors-Fiat SpA and DaimlerChrysler AG-Hyundai Motor --
don't appear ready to call it quits.

"In the announcement of priority negotiator, Daewoo
restructuring committee chairman Oh Ho-keun said this is
just the beginning," one source said. "Therefore, we feel
obligated to wait and see what will happen."

A communications director at GM Asia-Pacific operations,
who had planned to stay in Korea for a month, left for his
home port of Singapore immediately after the June 29
announcement. As a partner with Daewoo for more than 10
years prior to the 1992 breakup, it had been widely
speculated that GM was a clear front runner, with intimate
knowledge of its former partner.  GM was also given two
years to assess Daewoo and negotiate with Daewoo officials.  
(The Korea Times 03-July-2000)

DONGAH CONSTRUCTION: Former head trying to re-takeover
------------------------------------------------------
The former head of Dongah Construction which went into
court receivership with debts of W4.9 trillion is seeking
to take over the company once more.

Choi Won-seok was removed from the chairmanship by creditor
banks at the time of the technical bankruptcy and his
return is strongly opposed by them supported by the board
of directors. Some unions at Dongah, on the other hand, are
alleged to be in favor of Choi.  Choi's first moves towards
getting back to the helm was an application to Seoul Bank,
the main creditor, for the job of professional manager of
operations on June 30.

In an interview with a newspaper he said "he would like to
recover his honor if the people and workers at Dongah
allowed it." Choi went on to say that he had met with the
deputy chief of Libya's "Man Made River Project" Geriyani,
and that without him, Dongah would not get a contract for
the second half of the construction.

A director in charge of overseas construction projects at
Dongah strongly denounced Choi's comments saying the former
chairman had never met with Geriyani. He added that Choi's
return to the company would be "beyond common sense" and
"unimaginable."

The metal workers union at Dongah allegedly delivered a
statement to newspapers in the morning calling for Choi's
reinstatement, but this was later refuted by the clerical
union, the company's largest, which stated that he could
not avoid responsibility for its failure.  Seoul and other
creditor banks, plus government officials announced
publicly that they were opposed to Choi having anything to
do with Dongah.

Analysts fear that if Choi does make it back, it would set
a dangerous precedence for the return of other chairmen
responsible for the bankruptcies of their various groups
including Kim Woo-joong at Daewoo, Chang Chi-hyok at Kohap
and Chung Tae-soo at Hanbo.  (Digital Chosun  05-July-2000)

KOREA AEROSPACE INDUSTRIES: Issues $25M in FRNs
-----------------------------------------------
Korea Aerospace Industries (KAI) said yesterday it has
successfully issued floating rate notes (FRN) in the amount
of $25 million repayable in two years at an annual interest
rate of LIBOR plus 1.25 percent.  The company said its
first foreign fund borrowing from overseas will be used for
operational expenses.

The fund has already been paid into its bank accounts in
Singapore and Toronto. KAI was launched in October last
year through a merger of Hyundai, Samsung and Hanjin
aerospace companies.  The company plans to repay the loan
with proceeds from its supply of helicopter parts to Bell
Helicopter, amounting to around $30 million.

The supply of these parts will begin from the end of this
year and be completed at the end of 2002.  KAI sources said
the company is in the final stages of negotiations to turn
over a 40.9-percent stake to a foreign consortium led by
Boeing in exchange for 200 billion won ($179.6 million) in
investments.

The consortium will be the largest stakeholder in KAI when
the deal is completed. Stakes held by Hyundai, Samsung and
Daewoo, on the other hand, will be reduced to 19.7 percent
each.  (Korea Times  05-July-2000)

SEOUL INVEST.TRUST MGMT.CO.: To be recapitalized
------------------------------------------------
Daewoo Securities Co. will recapitalize troubled Seoul
Investment Trust Management Co. (SITMC) by making a capital
investment of 10 billion won ($8.98 million).

Daewoo Securities, the largest shareholder of SITMC, has
recently decided to participate in the capital increase of
the ailing trust, said an official at the Financial
Supervisory Service (FSS) yesterday.  In order to invite
Daewoo to recapitalize it, SITMC last month decided on a
5.3:1 capital reduction to lower its capital to 5.6 billion
won from 30 billion.

Once recapitalized, SITMC's equity will rise to 15.6
billion won.  Jointly established by Daewoo Securities and
Meritz Investment & Securities Co. in 1996, the FSS ordered
the asset-management firm to boost its capital after a 24.4
billion-won capital encroachment due to soured bridge loans
to affiliates of the failed Daewoo Group.  Industry
watchers expect the recapitalization to rescue the troubled
trust from the brink of closure.  (Korea Herald  05-July-
2000)


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

KIG GLASS INDUSTRIAL: Finishes two years of being in red
--------------------------------------------------------
KIG Glass Industrial Bhd, which was in the red for the last
two financial years, is hoping to get back into the black
in the current financial year ending Dec 31.

Its executive chairman Agus Nursalim said the company was
expected to perform better in the second half of the
current financial year owing to the improvement in the
economy.  He said that during the recent regional economic
crisis the company was also hit by staff shortage when 300
of its production workers were sent back to Indonesia.

Nursalim said that during the period the company could only
operate two furnaces instead of three, which made it
relatively uneconomical.  He said the rate of production
would increase as soon as the company received approval
from the authorities to bring in 300 workers from
Indonesia, who would be coming in stages.

"We are also looking at the local building industry and our
China operations for positive contribution to our future
earnings," Nursalim told Star Business after the company's
AGM recently.  "Zibo Jiali Glass Industrial Co Ltd recorded
a marginal improvement in revenue of 5.5% over the previous
corresponding period."
  
Nursalim said demand for glass tableware had increased
significantly and that the company would be exploring every
opportunity through effective and aggressive marketing
efforts to capture the Chinese market.  He said, however,
that the unit suffered a loss of RM7.1mil after the company
decided to make further provision for doubtful debts and
write off deferred expenditure.

According to Nursalim, the company which currently exports
to Bangladesh, Sri Lanka and countries in the Middle East
is looking at other new markets with special emphasis on
Europe and the United States.  He said that Europe and the
United States were two lucrative markets for glass
tableware products and related items and that through
careful planning the company hoped to be able to penetrate
these two nations.

The Johor-based company and its subsidiaries are involved
in the manufacture and sale of glassware, glass blocks,
clay roofing tile and carton boxes.  For its financial year
ended Dec 31, 1999, KIG Glass recorded a loss of RM17.5mil
against RM22.4mil in 1998, while its was turnover down to
RM95mil from RM98.3mil.  After the minority interest and
exceptional items were taken into account, the loss was at
RM13.6mil in 1999 compared with RM18.2mil previously.
(Star Online  05-July-2000)

MBf NORTHERN SECURITIES: Sold for cash
TAIPING SECURITIES SDN: Sold for cash
--------------------------------------
The businesses of ailing stockbroking companies MBf
Northern Securities Sdn Bhd and Taiping Securities Sdn Bhd
have been successfully disposed of for cash by the state-
owned asset management company Pengurusan Danaharta
Nasional Bhd.

The successful bidders submitted offers that either matched
or exceeded the estimated fair value of the respective
stock broking companies, a Danaharta official said.

The two small brokerages were taken over by Danaharta in
February 1999 after they became mired in bad debt, victims
of the recession that followed the Asian financial crisis
in 1997.  The companies, both based in the northern state
of Perak, were offered up for sale by tender on April 11.

MBf Northern Securities has been sold to PM Securities Sdn
Bhd for RM65mil, while Taiping Securities has been bought
by Hwang-DBS Securities Bhd for RM69mil.  The next highest
bid for MBf Northern Securities was RM60mil, and for
Taiping Securities, it was RM65.3mil.

News of Hwang-DBS Securities' successful bid for Taiping
Securities came just a week after it announced its
intention to buy a 51% stake in another brokerage--PJB-OUB
Securities Sdn Bhd, a subsidiary of Johor Capital Holdings
Sdn Bhd--for RM48.45mil cash.

The special administrators of MBf Northern Securities and
Taiping Securities said in a statement yesterday the
successful tenderers had submitted offers that either
matched or exceeded the estimated fair value of the
respective stockbroking companies.  They added that the
modifications to the workout schemes for both the
brokerages were now subject to approvals under the
Pengurusan Danaharta Nasional Bhd Act 1998 and by the
relevant regulatory authorities.

According to a statement from its parent company Hwang-DBS
(Malaysia) Bhd, Hwang-DBS Securities would be allowed to
establish a branch office in Taiping on completion of its
acquisition of Taiping Securities.  The statement stressed
that Hwang-DBS Securities had acquired only Taiping
Securities' stockbroking business and would not assume any
of its liabilities.

Hwang-DBS Securities currently has its head office in
Penang, serving clients in the northern region. It also has
a branch office in Shah Alam serving Klang Valley clients
which it was allowed to open when it helped to reimburse
the clients of the now-defunct Omega Securities Sdn Bhd to
the tune of RM70mil.  (Bloomberg News, Straits Times; Star
Online  05-July-2000)

MIHARJA DEVELOPMENT: Special administrator appointed
UNCANG EMAS SDN: Special administrator appointed
----------------------------------------------------
Pengurusan Danaharta Nasional Bhd has appointed special
administrators for property developers Uncang Emas Sdn Bhd
and Miharja Development Sdn Bhd effective yesterday.

The asset management company said in a statement that Mohd
Noor Abu Bakar and Suhaimi Badrul Jamil of Mohd Noor &
Associates were the special administrators for Uncang Emas
and Miharja, respectively.  Following the appointments, the
powers of the management of both companies were effectively
suspended and the special administrators had assumed
control of the respective company assets and affairs.

To enable the special administrators to complete their
tasks, a 12-month moratorium would take effect whereby no
creditor shall take action against the companies during
that period.  (Star Online  05-July-2000)

TIME dotCOM: Team to buy 30 percent stake
-----------------------------------------
Khazanah Nasional Bhd and the Sapura group are to team up
to jointly take a 30% stake in Time dotCom Bhd, the
telecommunications subsidiary of Time Engineering Bhd.

Under the arrangement, Khazanah has valued Time dotCom at
RM7.1bil, which is lower than the RM8.3bil which Singapore
Telecommunications Ltd (SingTel) was prepared to pay for
stakes in three companies within the Time group.  Based on
the Khazanah valuation, the government investment agency
would have to pay about RM2.1bil for the 30% stake in Time
dotCom.

However, sources told Star Business that Sapura would take
a 7.5% stake in Time dotCom through a debt-equity deal with
Khazanah whereby it would transfer its RM495mil loans
(including interest) in the Time group to Khazanah, which
would then have to fork out RM1.55bil in cash for its 22.5%
portion.

"Sapura's stake will come via a debt-equity swap. It will
not have to make any cash outlay," a source said.

Sapura is one of Time's main creditors and as of early this
year the amount owed to it was about RM440mil.  The 7.5%
stake in Time dotCom being acquired by Sapura is an upgrade
from the 2.5% that the company was supposed to get under
the Time/Corporate Debt Restructuring Committee proposal
announced on Jan 28.

At this stage, it's unclear whether the arrangement between
Khazanah and Sapura which has yet to be formalised by the
two parties had been conveyed to the Time group, and if so,
whether the latter had responded to the arrangement.
Sources also told Star Business that Sapura had received an
understanding from Khazanah that it could exercise the
option to buy over Khazanah's 22.5% stake in Time dotCom on
a cost-plus formula sometime in the future.

Assuming that Time agrees to sell 30% of Time dotCom to
Khazanah-Sapura, Time would retain about 53.5% of the
company.  The Khazanah-Sapura arrangement came about
through negotiations between Sapura Holdings Sdn Bhd
president and chief executive officer Datuk Shahril
Samsuddin and Khazanah's representative, Tan Sri Mohd
Sheriff Mohd Kassim, during the last two to three weeks.

It is understood that Sapura would also be looking out for
a foreign technology partner for Time dotCom.  Earlier, as
part of its restructuring scheme, Time has been on the
lookout for a strategic partner and SingTel was identified
as one.  However, when the SingTel deal fell through last
May, Khazanah stepped in to say it would take up to a 30%
stake in Time dotCom.

Time creditors are expected to give their blessings to the
debt restructuring exercise which Time is undertaking. They
will vote on the scheme on July 12.  Time dotCom is
expected to list on the KLSE main board by October this
year and all of its creditors are expected to be paid one
month after the flotation.

Efforts by Star Business to get comments from senior
officials of the Time and Sapura groups on the Khazanah-
Sapura arrangement were unsuccessful.  (Star Online  05-
July-2000)


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

METRO.BANK AND TRUST CO.: Central bank to probe rule break  
----------------------------------------------------------
The Bangko Sentral (Central Bank of the Philippines)
yesterday said it will look into reports that George S. K.
Ty's Metropolitan Bank and Trust Co. (Metrobank) violated
generally accepted accounting principles (GAAP) when it
charged its additional 4.31-billion-peso (US$100 million at
PhP43.436:US$1) bad loan buffer for 1999 against capital.

By doing so, Metrobank was able to show a higher net income
for the year.  Under the GAAP, provisions for probable loan
losses should be deducted from operations.  If the bank
adhered to the accounting principles, its net income for
1999 should have been PhP197.19 million, much lower than
the PhP3.126 billion it reported for last year, auditor
Sycip, Gorres, Velayo (SGV) & Co. said in Metrobank's 1999
annual report.

In 1998, the bank posted PhP4.704 billion in net income.
Earnings per share in 1999 should have been PhP0.66 instead
of PhP10.52. Return on equity should have been 0.46%
instead of 7.28% and return on assets, 0.08% instead of
1.2%, SGV & Co. added.  The auditing firm said of the
PhP6.11-billion bad loan buffer for 1999, only PhP1.8
billion was charged to current operations while PhP4.31
billion was charged to undivided profits.

But while the process was "not entirely normal," SGV said,
"except for the effects on the consolidated statements of
income," the financial position or the balance sheet of
Metrobank and its subsidiaries as of December 31, 1999 and
1998 is "in conformity" with GAAP.

Sources added Metrobank was not the only one that was found
tinkering with its books, as about 12 banks did the same
thing "as a result of the country's economic condition."

While Metrobank insists it has remained "transparent" to
the public, the central bank said it will study the matter.
"We will look into it," Bangko Sentral Gov. Rafael B.
Buenaventura yesterday said when asked by reporters.
Reacting to the report, Metrobank controller and executive
vice-president Alfredo P. Javellana said the matter is
"just a difference of opinion."

"SGV said in their opinion we should have charged the
additional loan loss provisions against operations... But
the reclassification of accounts is not a result of
operations but a result of the economic conditions," he
said. "Management reviewed the loans and decided towards
the end of the year to set aside PhP4 billion in additional
provisions charged against retained earnings."

He stressed the level of the bank's capital, which stood at
PhP45.015 billion as of end-1999, will not be affected by
its decision to charge the additional provisions against
retained earnings.

"We did something like that in 1993," he admitted. "But it
was reverse. We overprovided. The excess was added to
retained earnings, not income. We don't want to mislead
(people on our operating income)," Mr. Javellana said.

Metrobank's niche -- the middle market -- was one of the
heaviest hit by the 1997 regional crisis. Metrobank's non-
performing loans for 1999 stood at 14.35% of its total
loans.

To strengthen the banking community, the Bangko Sentral
last year doubled the required loan loss provisions. It
mandated banks to set aside general loan loss provisions
equivalent to 2% of total loans; 5% for loans especially
mentioned up from 2.5%; and 25% for substandard loans from
12.5%. (Business World  04-July-2000)

METRO.BANK AND TRUST CO.:  Auditor criticizes ops
-------------------------------------------------
SGV crticised Metropolitan Bank & Trust, the country's
second-largest bank by market value, for bad debt
provisioning after evaluation of there income statements.

Metrobank put 6.11 billion pesos (about HK$1.09 billion)
aside against possible loan losses, though only 1.8 billion
pesos of this was deducted against operating income. If all
the provisions were charged against current operations,
Metrobank would have had net income of only 197.2 million
pesos, instead of the 3.1 billion pesos earlier reported,
SGV said.

Metrobank's statements fairly reflect the bank's financial
position, the nation's biggest accounting firm said,
"except for the effects of recognising provision for
probable losses, net of related deferred income, as direct
charge to undivided profits."

The charging of probable losses against capital funds  had
the approval of the  external auditors and regulators.
Mr. Alfredo Javellana, senior vice-president at Metrobank.
Said "We weren't hiding anything. We have told regulators
about it and that's precisely why the opinion was there."

He said the reporting method chosen by Metrobank does not
change the bank's financial standing.

"The net effect on to capital is the same," Mr Javellana
said. "We chose one over the other because we are sensitive
to the opinion of the depositing public who may not be well
informed on how this thing works."   (South China Morning
Post  04-July-2000)

PHILIPPINE NAT.BANK: Falling book value moves sale up
-----------------------------------------------------
The book value of the semi-private Philippine National Bank
(PNB) has fallen to PhP62.50 per share as of the first
quarter, Bangko Sentral (Central Bank) Gov. Rafael B.
Buenaventura told reporters yesterday.

Prior to the joint selling effort of the National
Government and Chinese-Filipino tycoon Lucio C. Tan, PNB's
first-quarter performance was audited by SyCip Gorres
Velayo & Co. Its 1999 performance was examined by
Punongbayan & Araullo, while its 1998 financial situation
was audited by PricewaterhouseCoopers.

Under a recent board resolution, however, PNB decided to
lower its par value to PhP60 to enable it to offer new
shares at the same price.  Book value is determined by
dividing the number of issued shares by a company's net
assets. The bank's revised book value practically confirms
that efforts to recapitalize the bank will be centered
around this price level.

Earlier, Mr. Buenaventura said it would be difficult for
PNB to raise 10 billion Philippine pesos ($0.23 billion at
PhP43.563=$1) in fresh capital at the original exercise
price PhP100 per share.

"How will you sell shares at PhP100 per share when your
book value is already below that?" he said.

The Bangko Sentral chief said the government will make
another bid to sell its remaining 30% stake in the bank by
July 15. "(Finance Secretary Jose T. Pardo) told me last
night that we would try to sell the bank in two weeks'
time," he said.

Despite the risk of another failed bidding, Mr.
Buenaventura said the government "still has to try" to sell
its PNB holdings due to its programmed contribution to this
year's national budget.  The Department of Finance (DoF)
initially estimated to raise up to PhP6.5 billion ($0.149
billion) in one-time earnings from PNB's privatization.

Mr. Buenaventura said the Department of Finance's (DoF)
main objective is to exit from the bank as soon as possible
to be freed from the responsibilities of its
rehabilitation. "We want to put all these behind us," he
said.

Under a plan approved by the International Monetary Fund
(IMF) and the World Bank, the government will concentrate
its efforts on completing PNB's rehabilitation plan --
especially the infusion of fresh capital -- to enhance the
value of the state's shareholdings.

"We have the strong support of both the IMF and the World
Bank," Mr. Buenaventura said.

Actually, the National Government wants to put its 30% PNB
stake on the auction block by July 15 or before the stock
rights offering.  A senior DoF official said the government
wants to sell its stake to prevent a dilution of its stake
to only 10% after the stock rights offering.

Prior to the PNB board's decision, the government wanted to
dispose its shares in the bank at P100 per share, earning
some PhP6 billion ($0.138 billion) from the sale.  The
Finance department is currently preparing the terms and
conditions for the PNB sale. It will be submitted to the
Committee on Privatization for approval.  (Business World  
05-July-2000)

PILIPINO TELEPHONE CORP.: Marubeni wants cash payment
-----------------------------------------------------
Given Pilipino Telephone Corp.'s (Piltel) weak financial
standing, Japanese supplier Marubeni Corp. appears to be
left with no other choice than accept the debt-to-equity
swap arrangement offered by Piltel's parent Philippine Long
Distance Telephone Corp. (PLDT).

BusinessWorld learned from an industry source Marubeni
wants to have part of its $279-million turn-key contract
with Piltel paid in cash, instead of the full loan
converted into stake in the company. The source added the
Japanese firm also borrowed the amount that it spent for
Piltel's landlines in Mindanao, thus, would need the cash
to service its own debts and other liabilities.

In a chance interview last week, PLDT president and chief
executive officer Manuel V. Pangilinan said the company
offer Marubeni different terms with that of the deal
received by the banks.

"(Bondholders and Marubeni) will have the same terms (as
with the banks). That is the condition of the banks. We
cannot offer other terms to them," he said.

Asked on the request of Marubeni for cash payment, Mr.
Pangilinan jokingly replied: "Well, everybody wants cash.
Piltel does not have the money to pay that kind of debt.
What choice have they got, to be honest?" Mr. Pangilinan
stressed.

The conversion of debt to equity was the same scheme
employed by PLDT in negotiating with the cellular firm's
banks. It will also be used in negotiating with bondholders
and Marubeni, as requested by the banks themselves. Piltel
has a total of 34.9 billion Philippine pesos (US$80.3
million at PhP43.436:US$1) in obligations, a third of which
is with the banks, $279-million with Marubeni and the rest
with the bondholders. (Business World  04-July-2000)

URBAN BANK: Justice Dept. starts probe on execs today
------------------------------------------------------
The Justice department today will start its preliminary
investigation on four ranking Urban Bank executives charged
with estafa and falsification of documents.

To appear at the Department of Justice (DoJ) this afternoon
is San Miguel Corp. (SMC) president and chief operating
officer (COO) Francisco C. Eizmendi, Jr., who is set to
testify before State Prosecutors Prosecutor Cieliolindo A.
Luyun and Richard Anthony D. Fadullon that he lodged the
criminal complaint against the bank executives.

Mr. Eizmendi earlier asked the Bangko Sentral (Central Bank
of the Phils.) and the Philippine Deposit Insurance Corp.
(PDIC) to indict Urban Bank president Teodoro C. Borlongan,
senior vice-president Nida S. Santos, vice-president
Cecilia M. Magugat, assistant vice-president Rene Colin D.
Gray, and Ortigas branch teller Marie Cecille A. Lopez for
defrauding him and his wife, Aurora, of their five-million-
peso (US$115,000 at PhP43.436:US$1) time deposit.

"Mr. Eizmendi will attend to subscribe to his complaint We
decided to summon the petitioner and respondents separately
so we can prevent a confrontation at this early stage," Mr.
Luyun yesterday told reporters.

Aside from the SMC boss, also set to appear are former
Urban senior manager and Ortigas branch manager Ma.
Cristina Louise R. Lagdameo-Sy, PDIC corporate executive
officer Ma. Lucila H. Reyes and Urban Bank personnel
manager Teresita R. Olaguer. Urban Bank executives will be
at the DoJ on Thursday, when they are also required to
submit their counter-affidavits to refute charges against
them. All parties are scheduled to meet on July 13.
(Business World  04-July-2000)

URBANCORP INVESTMENT INC.: PDIC files P5B claim
-----------------------------------------------
The Philippine Deposit Insurance Corp. (PDIC) has filed a
P5.19-billion claim against Urbancorp Investments Inc. on
behalf of the Urban Bank.

The amount accounts for bulk of the P5.8-billion total debt
obligations of the failed investment house.  PDIC is the
government-appointed receiver for Urban Bank, which
declared a bank holiday in May after experiencing massive
withdrawals by jittery investors. (The Manila Times 04-
July-2000)


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

SEE HUP SENG: Refinancing its borrowings
----------------------------------------
SEE Hup Seng is raising $13 million through a transferable
loan facility with detachable warrants to refinance its
borrowings.  (Straits Times  05-July-2000)


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

BUMRUNGRAD HOSPITAL: Reports on debt-restructuring plan
--------------------------------------------------------
Bumrungrad Hospital said its board had resolved to allocate
convertible debentures totalling Bt1.5 billion as part of
its debt-restructuring plan.  It will also transfer land to
repay 407.9m bt to Bangkok Bank. The board agreed to pledge
land as security for the issue of the convertible
debentures. (Bangkok Post 04-July-2000)

INTER FAREAST ENGINEERING: Files rehab plan
STAR BLOCK GROUP: Files rehab plan
UNICORD PLC: Files rehab plan
-------------------------------------------
Unicord Plc was among three companies filing rehabilitation
plans with the Central Bankruptcy Court yesterday to settle
debts totalling 12.3 billion baht.

Unicord owes its creditors more than 7.1 billion baht and
asked the court to appoint Pipat & Associate Co as the
planner. A major canned tuna manufacturer, Unicord plunged
into financial trouble in the mid-1990s, largely due to an
aggressive investment plan that included a highly leveraged
takeover of Bumble Bee, a US-based canned tuna
manufacturer.  The company's severe financial difficulties
were believed to have been a factor in the suicide of its
president, Damri Kornuntakiat, in 1995.

Another case was filed by five creditors of Star Block
Group Plc, which owes its creditors about three billion
baht. They asked the court to approve United Equity Co as
the planner.  once a leading contractor and property
developer, Star Block saw its debts soar after the baht was
floated in 1997.

Inter Fareast Engineering Plc, which owes 1.67 billion
baht, requested that Arthur Andersen Co be appointed as the
planner for its business rehabilitation. The company is the
distributor of Konica office automation equipment.   
(Bangkok Post  04-July-2000)

MODERN HOME DEVELOPMENT: Clarifies debt rehab to SET
----------------------------------------------------
The Stock Exchange of Thailand (SET) asked Modern Home
Development Public Company Limited (M-HOME)to submit a
complete debt restructuring and rehabilitation plan, which
its board of directors approved last week. It requires the
company:
1. To reduce the accrued interest expenses from calculating
at default lending rate to calculating at a suitable
lending rate.

2. To transfer all M-HOME assets, in the book value of Bt
3,234m, to pay for both secured and unsecured creditors at
market values, appraised by independent appraising
companies.  The company's debt will be deducted in the
amount of Bt 2,599m. through this asset swap process.

3. To convert the debt of Bt 2,351 m. to equity at the
agreeable price from both creditors and existing
shareholders.

4. To raise registered capital in order to offer to the new
investor who signed on the memorandum of understandings
with M-HOME on 23 June 2000.  The new investor will be the
majority shareholder held 75% of total registered shares
after the success of the rehabilitation process.

5. An executive team of the new investor to manage M-HOME
in the future.  They plan to transfer their existing assets
or to bid new assets via bidding processes in order to
develop all assets and then to launch new products to the
market in the suitable time within 5-10 year period.  The
new investor intends to remain the company status as a
listed company in the Stock Exchange of Thailand.

Per the debt restructuring and rehabilitation plan, M-HOME
will continue the next procedure via the rehabilitation
process.  The company will enter into the process
approximately in July-August 2000.  The whole
rehabilitation process will be completed within 6 months of
its start and the company will report its progress
intermittently to the SET. (Stock Exchange of Thailand  04-
July-2000)

ONPA INT'L PLC:  To complete debt restructuring plan
----------------------------------------------------
Onpa International Plc's shareholders have approved the
issuance of 33.4 million new shares, which will raise the
company's registered capital from Bt3.08 billion to Bt3.41
billion, to complete its debt restructuring plan.

Of the newly issued shares, 15 million will be allocated to
its directors and staff under the Employee Stock Option
Shares, 12 million to buyers of Right Pictures Co Ltd's
stake and the remainder to specific investors through
private placement.

After the company completes its recapitalisation, it will
control Right Pictures Co Ltd, which holds licences to
video and music titles. These will enable Onpa to expand
its product base and eventually offer the market a greater
variety of products.  (The Nation 04-July-2000)

PRECIOUS SHIPPING: Signs $25M loan deal
---------------------------------------
Precious Shipping is completing its $25 million dollar loan
agreement to pay creditors as part of its debt
restructuring scheme.  

The $25M loan from Fleet National Bank will used as
proceeds to pay unsecured creditors including interest
payments due to domestic and Eurobond holders. The company
aims to complete the exercise by the third quarter of 1999.
Precious has been withholding interest payments on domestic
and Eurobond issues since November.  

A Eurobond holders meeting is scheduled Friday, and Mr.
Hashim is confident of getting their approval.  The biggest
hurdle will probably be getting a quorum at the meeting,
which has been a problem in the past, said Hashim.  The
company posted a small profit for the first quarter of the
year, despite having to pay restructuring fees. (Lloyd's
List International  28-Jun-2000)

SIAM CITY BANK: Foreign and local bidders to be allowed
-------------------------------------------------------
new sale of shares in Siam City Bank could include bids
from local as well as foreign investors, say Bank of
Thailand officials.

The central bank would survey local investor interest in
purchasing shares in Siam City Bank, Salinee Wangtal,
director of the Financial Institutions Resolution
Department, said yesterday.  Any Thai interested in buying
bank shares could inform regulators now, she said. Results
of the survey would be used to help decide on future
privatisation plans for Siam City Bank, which was seized by
regulators in 1997.

Opening a new bidding round with the participation of Thai
investors was one option, Mrs Salinee said.  The Financial
Institutions Development Fund last month announced it had
scrapped talks with US investment fund Newbridge citing
disagreements on prices and sales conditions.

Siam City Bank is the last unsold bank that was seized by
the state, after the sale of Bangkok Metropolitan Bank,
Nakornthon Bank and Radanasin Bank. Mrs Salinee said there
were four options for Siam City Bank. First was to have the
development fund run the bank, with bad loans separated to
an asset management corporation. Regulators could close the
bank after settling all deposits and liabilities.

Third was to accept new bids for a majority stake in the
bank, with the winning investor taking over both good and
bad assets. A loss-sharing scheme would be applied for bad
loans.  Last, the development fund could accept bids for
just the "clean" bank, with bad loans managed in state
hands.

"The central bank has expressed its opinion to the Finance
Ministry that Thais, both individuals and companies, should
be allowed to bid," she said.

Thai individuals and companies could buy up to 5% per party
in Siam City Bank, in line with shareholding limits under
current banking laws.  Regulators needed final approval
from the Finance Ministry of the scrapping of talks with
Newbridge before moving forward with the new options.
Closing the bank was least likely, given the high costs
which the development fund would have to shoulder for
paying off deposits and liabilities.

The decision to allow Thai investors to participate in the
bidding comes after months of criticism of regulators for
offering generous terms to foreigners for the sale of state
banks.  Suchart Thada-Thamrongvech, an economist at
Ramkhamhaeng University, said the government should treat
Thai and foreign investors equally.

As asset prices remained low, the Financial Institutions
Development Fund should consider running the bank itself
for 3-5 years before selling its stake to Thai investors,
he said.  (Bangkok Post  05-July-2000)

SIAM GENERAL FACTORING: Signs debt restructuring agreement
----------------------------------------------------------
Siam General Factoring signed a debt-restructuring
agreement totalling $33 million with nine lenders on June
30.

The lenders accepted to convert $11.5 million in debt to
equity.  The remaining principal of $21.4 million will be
settled in five years. It will increase capital by issuing
preference shares equivalent to $11.5 million to existing
shareholders. Unsubscribed shares will be offered to
lenders.

The preference shares are convertible to common shares
after 2001. Within 2001, it will raise capital by issuing
common shares to at least Bt230.4 million. Siam Commercial
Bank has approved a credit line totalling Bt320 million for
the company's working capital.  (Bangkok Post 04-July-2000)

THAI DURABLE TEXTILE: Progress on debt restructuring plan
---------------------------------------------------------
Thai Durable Textile Plc has already signed a commercial
term sheet with Bangkok Bank, the company's largest
creditor with 85 per cent of its total debt.  Thai Durable
Textile expected that the debt-restructuring contract would
be signed by August. (The Nation  04-July-2000)

THAI ELECTRONIC INDUSTRY: Progress on financial rehab
-----------------------------------------------------
Thai Electronic Industry PCL is in the restructuring
process under the supervision of the CDRAC, The Bank of
Thailand, and has been working closely to adjust the
restructuring plan with its financial institution
creditors.

The listed manufacturer of audio equipment asked the court
to appoint Premier Planner Co as the planner to restructure
the company's outstanding debt, which totals 665 million
baht to some 123 creditors.

Premier Planner Comapany Limited, as the court-appointed
Planner and Plan Administrator, will evaluate the
rehabilitation plan for the creditors. The plan will
include debt to equity conversion to reduce the company's
burden, reduction of interest rates, rescheduling of the
remaining debts to a sustainable level and capital increase
to ensure future growth.  (Stock Exchange of Thailand,
Bangkok Post 04- July-2000)

THAI LUBE BASE: Ailing oil firm awaits debt verdict
---------------------------------------------------
Thai Lube Base ceased its operation at its plant after a
liquidity crunch resulting from a a delay in its US$200m
million (Bt78.8 billion) debt restructuring plan last
month.  

After a number of postponements, 14 creditor banks are
scheduled to make a final decision on it's debt-revamp
plan, on July 21. If the plan is approved, the company will
reopen operations late next month.

After the cessation of principal debt repayments in March,
the company continued to receive $12 million to $15 million
every month from the Petroleum Authority of Thailand (PTT)
to finance purchases of raw materials. PTT is one of Thai
Lube's major shareholders with a 30-per-cent stake. Apart
from capital increases, the other two-thirds of debt would
be equally divided between debt-to-equity conversion and
rescheduled debt payments.

The plan asks for a 10-year extension of the debt repayment
period with three years of grace, said Surasak. Creditors
are expected to receive a 20-per-cent stake between them in
Thai Lube after debt-to-equity conversion.  Surasak said
Thai Lube Base would strengthen its marketing capability by
joining Thai Petrochemical Industry (TPI) to develop a
marketing plan. TPI's capacity for base oil production is
about 320 million litres per year.  (The Nation  05-July-
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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                     *** End of Transmission ***