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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 20, 2000, Vol. 3, No. 140

                                      Headlines


* A U S T R A L I A *

ALLMYBILLS: Claim on assets threatens to wrench sale
GNB TECHNOLOGIES: Lawsuit threatening Exide purchase
NORTH LTD: Rio Tinto takeover bid facing increasing fire
NORTH LTD.: Nippon Steel claims veto power as shares fall
TELSTRA CORP: Taskforce sharpens axe for restructuring
TRANSFIELD HOLDINGS: Posts A$200M in losses
131SHOP.COM: Ridding some assets, entanglements


* C H I N A  &  H O N G  K O N G *

HAIFORD DEVELOPMENT LTD: Facing winding up petition
HARVEST FIELD INVESTMENT LTD: Facing winding up petition
HARVEST LINK INVESTMENT LTD: Facing winding up petition
HARVEST WAY HLDGS LTD: Facing winding up petition
HENMY DEVELOPMENT LTD: Facing winding up petition
JIN HUA XIN INT'L HLDGS LTD: Facing winding up petition
KING SHELL INVESTMENT LTD: Facing winding up petition
MARK FAME DEVELOPMENT LTD: Facing winding up petition
MEGALITE ENTERPRISES LTD: Facing winding up petition
NEW JAPAN TOURS LTD: Facing winding up petition
SHANGHAI TYRE & RUBBER CO: To ally with Michelin


* I N D O N E S I A *

PT SEMEN CIBINONG: Admits to undisclosed bank deposits


* J A P A N *

SOGO CORP.: May sell Hong Kong site


* K O R E A *

ANAM SEMICONDUCTOR: Creditors close workout program early
DAEWOO CORP.: Creditors to vote on separation plan
HYUNDAI ELECTRONICS INDUS.: Posts first-half loss


* M A L A Y S I A *

LION CORP.: Minority s'holders seek stablizing position


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

FIRST DOMINION PRIME HLDGS.: 5 investors keen on it
PHILIPPINE NAT.BANK: Tan strengthens position with bid


* S I N G A P O R E *

SOGO SINGAPORE: Appoints interim judicial manager


* T H A I L A N D *

DBS THAI DANU BANK: Posts narrower 6-mos.loss than last yr.
TOTAL ACCESS COMMOS.: Secures Bt20b loan from creditors


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

ALLMYBILLS: Claim on assets threatens to wrench sale
----------------------------------------------------
Embattled online bill payment service Allmybills may have
trouble selling its intellectual property after e-commerce
outfit mydecision.com.au yesterday laid claim to the
assets.

Allmybills, which was placed in voluntary administration
last week after failing to secure capital, has appointed
insolvency experts Ferrier Hodgson to negotiate the sale of
its assets.  These include a call centre in Tasmania,
software, hardware and intellectual property. According to
the company, the intellectual property consists of the
domain name allmybills.com.au, as well as the Allmybills
trademark.

But while Allmybills may own its domain name, it does not
yet own the trademark. Instead it only has a trademark
pending on allmybills.com.au with IP Australia, the body
which registers trademarks.  It also has trademarks pending
on allmybills.com and allmybills.co.uk.

Meanwhile however mydecision.com.au has been successful in
getting approval from IP Australia on a trademark for
mybills.com.au. Mydecision.com.au director Mr Craig
Saunders said yesterday he was surprised to hear Allmybills
was trying to sell a trademark it did not yet own.
He also said that since his company owned the trademark
mybills.com.au and because the two were so similar,
Allmybills would find it difficult getting its trademark
approved by IP Australia.

Mr Saunders has registered around 230 domain names in
Australia, plus another 1,000 around the world, all with
the prefix "my," making him the second largest holder of
domain names in the country, behind Ehyou.com chief
executive Mr Domenic Carosa, who owns about 470.
An IP Australia spokeswoman confirmed yesterday the
trademark mybills had been approved but said parties
wanting to object to its use had until September to do so.
(South Morning Herald  19-July-2000)

GNB TECHNOLOGIES: Lawsuit threatening Exide purchase
----------------------------------------------------
Exide Corporation still expects to buy Pacific Dunlop's
underperforming GNB Technologies for $630 million, even
though the indebted US giant's boss says a court bribery
case may threaten the deal.

Exide chairman and chief executive Robert Lutz said legal
action against it two weeks ago by America's biggest
battery-maker, Johnson Controls, "could injure Exide in
connection with its current purchase of GNB and any related
debt offering."

But Exide head of investor relations Bruce Boyle told The
Australian yesterday: "We don't expect (court action) to
have any negative effect on the deal going through."

Mr Boyle said financing for the deal, announced by PacDun
in May, could be completed early.  But Exide may face big
legal costs and damages from the US court action, which
alleges the commercial bribery of a former Sears Roebuck
and Co battery buyer was a cause of Johnson Controls, the
largest battery company in North America, losing its
battery supply contract with Sears in 1994.

The heavily indebted Exide operates at the mercy of some 35
bankers, with gearing levels approaching 900 per cent.
Exide made a $US1 million loss last quarter, bringing its
losses to $US127.3 million ($218.2 million).  Given its
debt position, experts say Exide is likely to have to
undergo further capital restructuring, regardless of the
GNB purchase.

As part of the sale deal PacDun will hold 4 million Exide
shares, representing 18 per cent of the company, escrowed
for three years, but its role in any capital restructure is
unclear.  Mr Boyle said financing for the deal had "not, so
far" been affected by the court action which could have
made it harder to raise funding. He said "all the senior
executives of this company are meeting with banks" at the
moment.

But Mr Boyle said it was unlikely the deal would be
finalised earlier than the previously announced
September/October time frame but "we may get a commitment
for financing before that."  The US regulator has approved
the deal.

Mr Boyle said Exide was still considering whether it would
make a civil counter claim against Johnson Controls.
Big volumes in PacDun shares have been traded recently -
5.27 per cent of the company in the past month.
JB Were has done most of the trading. The selling is
believed to be a continuation of the Franklin Resources
selldown. Franklin held 14 per cent of PacDun in January
and went under 5 per cent last week.

Roy Disney's Shamrock Investments has long been rumoured to
have been buying but has yet to lodge a 5 per cent
substantial shareholder notice. Australian fund managers
have also been buying.  PacDun shares closed unchanged at
$1.63 yesterday with 4.9 million shares.  (The Australia
19-July-2000)

NORTH LTD: Rio Tinto takeover bid facing increasing fire
--------------------------------------------------------
The West Australian Government has increased the pressure
on Rio Tinto's $2.8 billion takeover bid for iron ore rival
North Ltd by raising concerns about the deal in a
submission to the Foreign Investment Review Board.

The bid also risks creating tensions in the Federal
Government, with the Treasurer, Mr Peter Costello, and the
Minister for Workplace Relations, Mr Peter Reith, appearing
to hold different views on the plan.  Japanese iron ore
customers are also increasing their opposition with Nippon
Steel, Japan's dominant steel maker, flagging that it may
use its veto powers in the Robe River iron ore joint
venture - North's major investment.

The West Australian Resources Minister, Mr Colin Barnett,
confirmed yesterday that he had written to the Foreign
Investment Review Board outlining his concerns about Rio's
plans.  Mr Barnett said that though he was in favour of
foreign investment in Western Australia's resources
industry and acknowledged its economic benefits for the
State, he had a great concern about increasing foreign
ownership.

Canberra was also aware of his position, he said.
The West Australian Government has already put foreign
ownership of key resource assets on the political agenda by
raising the national interest implications of the proposed
$8 billion merger between Royal Dutch Shell and Woodside
Petroleum.

Mr Barnett has questioned whether that deal, under which
Shell will dictate the future development of a key part of
WA's gas industry, puts Australia's interests first.
The Federal Government has remained silent on the Shell
deal. But Mr Costello is understood to have reservations
about Rio's bid for North. Rio officials were in Canberra
yesterday lobbying on the bid.

Mr Reith, on the other hand, is believed to be broadly
supportive and has frequently singled out the London-based
company for praise for its efforts to overhaul work
practices in the mining sector.  Mr Reith is believed to
have communicated his support for the deal to Rio Tinto's
managing director, Mr Barry Cusack, who was a guest at Mr
Reith's 50th birthday party at the weekend.

Rio's bid has not yet been considered formally by Mr
Costello. He is awaiting advice from the Foreign Investment
Review Board, which is due to pronounce early next week on
Rio's application for approval.  FIRB is required by law to
provide advice within 30 days, but the Treasurer, whose
responsibilities include foreign investment approvals, is
entitled to delay a final decision for an additional 90
days by interim order.

But Rio will command backing within the Government. "The
Government is a strong supporter of Rio Tinto. It has been
at the cutting edge of reforms in the mining industry," a
senior government source told The Australian Financial
Review last night.

The Government has the power under the Foreign Acquisitions
and Takeovers Act of 1975 to "block proposals that are
determined to be contrary to the national interest".

Mr Costello's concerns are understood to derive partly from
a belief that RTZ did not live up to its earlier
commitments to preserve jobs at its Melbourne headquarters.
Rio Tinto's merger with CRA in 1995 resulted in significant
job losses in Australia and the relocation of key personnel
to London.

Meanwhile, Mr Barnett said yesterday that if Rio succeeded
with its bid, only then could the partners of Robe River
(of which North has a 53 per cent interest) approach the
West Australian Government to seek to vary their
infrastructure obligations under the State agreements
covering the $1 billion development of the West Angelas
iron ore project in the West Pilbara. (Australian Financial
Review  19-July-2000)

NORTH LTD.: Nippon Steel claims veto power as shares fall
---------------------------------------------------------
Nippon Steel claims its 10.5 per cent stake in North's Robe
River gives it power to veto deals involving the iron ore
business - the key asset sought by Rio Tinto in its $2.8
billion bid for North.

The claim is the strongest threat yet by Japanese steel
makers against Rio's bid.  It came amid rumours the
powerful Japanese Steel Mills were considering the
termination of lucrative coking coal supply contracts held
by Rio's big coal division.

Last week JSM threatened to cancel Rio-held iron ore
contracts worth almost $140 million.  Japan buys about 65
million tonnes of iron ore and more than 40 million tonnes
of coking coal from Australia each year, making JSM
Australia's biggest customer.

However, JSM fears a loss of bargaining power in annual
price talks if Australia's iron ore industry comes under
the effective control of BHP and Rio Tinto.  The pair
jointly produce about 120 million tonnes from the Pilbara
and account for more than half of coking coal exports.
According to a JSM newsletter, the Tex Report, Nippon Steel
president Akira Chihaya said yesterday Nippon had the power
to directly block Rio's bid.

Japan's biggest steel maker, Nippon owns 10.5 per cent of
Robe, the world's fourth largest iron ore producer,
alongside fellow JSM members Mitsui and Sumitomo, which
hold 33 per cent and 3.5 per cent respectively.

"Nippon Steel has yet to take any measures to prevent Rio's
takeover bid . . . but the (Robe) joint venture operates
under various conditions, including a veto on a change of
the existing conditions," Mr Chihaya said after a meeting
of the Japan Iron and Steel Federation.  "The veto could be
exercised for the standpoint of protection for minor
shareholders . . . Nippon does not welcome Rio Tinto's
(bid) from the standpoint of an iron ore buyer."

North refused to comment on Mr Chihaya's claims yesterday,
and said the terms of the Robe joint venture agreement, in
which it holds 53 per cent, were confidential.  Though veto
powers would appear both unusual and unlikely, most joint
venture agreements include some provisions for any change
of control, usually in the form of pre-emptive rights to
acquire the disputed assets.

But any "material adverse change" in the status of North's
business or assets would breach the conditions of Rio's
$3.80 per share offer.  Rio yesterday said it was unable to
assess the significance of Mr Chihaya's remarks.

"If there are (such) conditions contained in the Robe joint
venture agreement, we'd expect to see the details disclosed
in North's target statement," a company spokesman said.
"But obviously, we wouldn't expect a joint venture partner
to refuse a good business case, and this is one."

Rio believes the combination of its iron ore operations
with Robe will deliver substantial cost savings and greater
profitability.  North shares fell again yesterday, slipping
2c to $3.89, while Rio was steady at $27.30. (The Australia
19-July-2000)

TELSTRA CORP: Taskforce sharpens axe for restructuring
------------------------------------------------------
Telstra plans to offload unprofitable products and
streamline its infrastructure as part of a program to cut
costs by $650 million a year.

Telstra has set up a taskforce of 51 people to identify
products and systems that are unprofitable or no longer
relevant to its customers. The taskforce is expected to
create savings of over $200 million a year and result in
"significant" job losses.

The taskforce is managed by Mr Max Smith, director of IT
and data solution at Telstra Retail Services, and reports
to Telstra chief financial officer Mr Paul Rizzo. Mr Smith
said Telstra had identified 27 areas across the company for
change. He said the changes should have little impact on
customers.

"The changes we are making are more behind the scenes, and
the products that we are taking away have a small customer
base," he said.

Mr Smith said the changes would affect the international
carriage of its Big Pond Internet service as traffic
switched from Fastway cable links to New Zealand and PNG to
more modern cable links. Other changes included
rationalising the billing and customer database of pre-paid
mobile phone customers, the replacement of inter-capital
radio links with fibre optic cable, trimming duplicate
networks used by corporations for data traffic, and
shedding some video conference services operating under the
Conferlink banner.

Telstra's telex service, which has about 300 customers
including the Department of Foreign Affairs and
international clients in Africa and Asia, would be made
profitable, Mr Smith said.  As part of the product
rationalisation plan, Telstra will withdraw from the
management of the children's Internet service Kahootz,
which allows children to create Web pages and send visual
content to other members.

He said Kahootz's small customers base made the service
unprofitable.  Mr Smith said the program would come under
the supervision of Mr Ted Pretty's retail services arm in
about six months.  (Sydney Morning Herald  19-July-2000)

TRANSFIELD HOLDINGS: Posts A$200M in losses
-------------------------------------------
Transfield Holdings, built by Franco Belgiorno-Nettis, has
lost $A200 million, it was reported on 18 July 2000.

The construction and project management divisions have
experienced significant losses in the course of
developments.  Despite these losses, the company is to be
listed on the Australian Stock Exchange. Transfield Project
management chief executive, Tony Shepherd, claims the
company's $A150 million float would not be affected,
because the listed vehicle is to be a services business.

In this area Transfield gained $A700 million in profits.
The company's debts were incurred due to cost overruns,
breaches of contract and potential liquidated damages
claims.  (ABIX-The Daily Telegraph 18-July-2000)

131SHOP.COM: Ridding some assets, entanglements
-----------------------------------------------
Burnt-out dot-com 131Shop.com yesterday revealed that it
has extricated itself from the last of its financial
responsibilities amid rumours it will become a mining
company.

The once high-flying Internet directory has broken the link
with its parent company, Amlink Technologies, as well as
its agreement with Bartercard, its partner in an online
shopping centre development.  The company has also
abandoned its previously stated plan to concentrate on its
Internet directory and call centre business, giving away
the call centre operation to a company associated with
former general manager Grant Cassidy.

Cassidy's company, Transglobal, will be paid $50,000
immediately by 131Shop to take on the call centre and
provide software maintenance.  Cassidy also receives
131Shop's portion of an online shopping mall joint venture
with Bartercard and will assume a $100,000 liability for
the project. He has to pass on 10 per cent of any revenue
generated in the next two years.

Cassidy, whose employment with 131Shop was terminated
yesterday, also received a final payout of $125,000.
The company made its announcement to the stock exchange
late last night, following a day of rumours about its
conversion to a mining explorer.

131Shop shares fell 1.5c to 8c, reflecting the tone of the
local technology market despite the US Nasdaq market
reaching a three-month high.  The Nasdaq Composite index
rose 28.49 on Monday to 4274.67, its highest close since
April 7, buoyed by expectations of strong second-quarter
results from technology heavyweights Intel, Microsoft,
Qualcomm and Sun.

Market participants said the recent momentum in Australian
tech stocks had stalled amid a sense that the sector had
run ahead of its US counterpart.

"Australia in the last month has probably run a little bit
harder than the Nasdaq has," an Internet analyst said.
"While the Nasdaq is running stronger, the Australian
market is just consolidating."

Brokers attributed the broad decline in technology stocks
to investor caution ahead of earnings announcements and the
US consumer price index figure, due out last night.

"There is no doubt investors are sitting around waiting for
these events and in the wait the caution has got the better
of them," said Marcus Padley from Bell Securities.
"Everything is rolling off the top."  (Fairfax I.T. 19-
July-2000)


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

HAIFORD DEVELOPMENT LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 23 on the petition of
Shing Wo Development Limited for the winding up of Haiford
Development Limited. A notice of legal appearance must be
filed on or before August 22.

HARVEST FIELD INVESTMENT LTD: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 2 on the petition of
Kowloon-Canton Railway Corporation for the winding up of
Harvest Field Investment Limited. A notice of legal
appearance must be filed on or before August 1.

HARVEST LINK INVESTMENT LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 2 on the petition of
Navipol Company Limited for the winding up of Harvest Link
Investment Limited. A notice of legal appearance must be
filed on or before August 1.

HARVEST WAY HLDGS LTD: Facing winding up petition
-------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 2 on the petition of
Lorient Holdings Limited for the winding up of Harvest Way
Holdings Limited. A notice of legal appearance must be
filed on or before August 1.

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

JIN HUA XIN INT'L HLDGS LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on July 26 on the petition of The
Hongkong and Shanghai Banking Corporation Limited for the
winding up of Jin Hua Xin International Holdings Limited. A
notice of legal appearance must be filed on or before July
25.

KING SHELL INVESTMENT LTD: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on July 26 on the petition of Kong
Kin Kuen for the winding up of King Shell Investment
Limited. A notice of legal appearance must be filed on or
before July 25.

MARK FAME DEVELOPMENT LTD: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 16 on the petition of The
Hongkong and Shanghai Banking Corporation Limited for the
winding up of Mark Fame Development Limited. A notice of
legal appearance must be filed on or before August 15.

MEGALITE ENTERPRISES LTD: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 30 on the petition of The
China State Bank Limited for the winding up of Megalite
Enterprises Limited. A notice of legal appearance must be
filed on or before August 29.

NEW JAPAN TOURS LTD: Facing winding up petition
-----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 23 on the petition of
Caltex Oil Hong Kong Limited for the winding up of New
Japan Tours Limited. A notice of legal appearance must be
filed on or before August 22.

SHANGHAI TYRE & RUBBER CO: To ally with Michelin
------------------------------------------------
Shanghai Tyre & Rubber Co. will form a joint venture "very
soon" with Michelin & Cie, as it pushes to repay debt and
increase profitability, an official said.

The Shanghai municipal government has already approved the
venture, said a planning official at Shanghai Huayi Group
Corp., Shanghai Tyre's parent. A report in the Shanghai
Daily newspaper said the transaction is worth about $300
million.

The alliance would fit with Michelin's strategy of becoming
Asia's second-biggest tiremaker by 2005 and reducing its
reliance on Europe. The French company is currently No. 4
in Asia, with a 5.5 percent market share, behind
Bridgestone Corp., Goodyear Tire & Rubber Co. and Yokohama
Rubber Co.

"We've known for some time we will have to increase our
presence in Asia to become truly global," said a Michelin
spokeswoman, though she called today's report
"speculation."

Shanghai Tyre's B shares, which are reserved for foreign
investors, jumped 10 percent to 21.8 U.S. cents, matching a
two- year high set seven-week ago and adding to a 15
percent gain in the past four sessions. Michelin shares
fell as much as 0.84 euros, or 2.3 percent, to 36.35 euros
in Paris.

In March Shanghai Tyre, China's largest maker of radial
tires,  said it's planning to sell a stake in each of its
two plants in Shanghai, a way to attract technology to
develop new products. An investment by Michelin would give
Shanghai Tyre access to much-needed funds to repay long-
term debt, which stood at 1.2 billion yuan ($145 million)
in 1999.

"We expect the company's business operations to improve in
the future," said Zhen Weigang, a research manager at
Shanghai Finance Securities Co., who has a "buy"
recommendation on the stock. Michelin's technology will
make Shanghai Tyre more competitive, he added.

Shanghai Tyre this month said it will post a first-half
loss because of fierce competition and falling margins,
following a 1999 loss of 256.6 million yuan. Michelin,
which began selling the first automobile radial tires in
1946, presently operates only one Chinese joint venture in
Shanyang, in northern China, where it started production in
1996.  (Bloomberg  18-July-2000)


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

PT SEMEN CIBINONG: Admits to undisclosed bank deposits
------------------------------------------------------
PT Semen Cibinong has admitted that it has bank deposits in
the Cayman Islands, as well as a large amount of debt, The
Observer reported.  It quoted Yose Rizal of the Jakarta
Stock Exchange as saying that Semen Cibinong was questioned
over funds allegedly deposited in bank accounts in the Cayman Islands and
progress in its debt
restructuring programme.  (AFX-Asia; Business Times  19-July-2000)


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

SOGO CORP.: May sell Hong Kong site
-----------------------------------
Japanese department store giant Sogo Company said 17 July
that it is considering the sale of part or all of the
building that houses its Hong Kong department store.

Located at a busy corner of the Causeway Bay major shopping
precinct, the building could raise as much as $HK4 billion
($A885 million), according to business analysts. Any funds
raised would go towards Sogo's repayment of its 1.87
trillion yen debt.  At the same time, such a sale could
provide a spark to Hong Kong's property market, recovery of
which has dragged compared with the city's overall
recovery.


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

ANAM SEMICONDUCTOR: Creditors close workout program early
---------------------------------------------------------
Anam Semiconductor, which was put under workout in late
1998 due to over expansion and reckless payment guarantees
among affiliates, has recovered in less than two years.

Anam Semiconductor creditors announced Tuesday afternoon
that they have decided to close Anam's workout program
early; the company seems to have normalized with a debt
ratio of only 66 percent and net profits for this year
estimated at 380 billion won (US$ 341 million).

Anam Semiconductor went under workout in 1998 with debts of
2.5 trillion won. The company had made excessive
investments in factory expansion in 1997, and its
affiliates became insolvent amidst the ensuing Asian
financial crisis.

Early normalization is attributed to faithful
implementation of a self-rescue plan and creditors'
decisive debt-equity swap valued at 250 billion
won.  The company sold three packaging factories which were
not even part of the original self-rescue plan and finally
lowered its debt ratio from 1,762 percent in October 1998
to 66 percent in June this year.

Stock prices also jumped from 3,600 won per share in
October 1998 to the 14,000-won range in June, an appraisal
profit windfall to creditor banks that changed their loans
into stocks.  Anam, however, confronted difficulties during
the workout program.  The biggest hurdle came when creditor
banks blocked the sale of Anam Semiconductor's Kwangju
factory, but its restructuring committee and management
overcame the difficulty by narrowly persuading the
resisting creditors.

"Success in a workout program seems to depend on how well
the company mediates between creditors and lessons existing
management's resistance," an Anam Semiconductor official
said.  (Asia Pulse  19-July-2000)

DAEWOO CORP.: Creditors to vote on separation plan
--------------------------------------------------
Creditors of Daewoo Corp., the trading and construction
unit of the dismantled Daewoo Group, will vote on the plan
to divide the company into three independent entities as
part of its debt workout program today, a creditor bank
official said yesterday.

If approved by the 76 creditor financial institutions today
and a shareholders' meeting scheduled for Saturday, the
three companies - a trading firm, a construction company
and a firm consisting of the remaining operations - will be
established formally Sept. 1, he said.

"To separate Daewoo Corp., 75 percent of the creditors
should vote for the planned spin-off," the official said.
"But they are sure to give the green light to the proposal
since a creditors' vote is just a formality."

The new entities - Daewoo International, Daewoo
Construction and Daewoo Corp. - will be able to speed up
efforts to resume normal operations with expected financial
support from creditor banks, he said.

In the spin-off process, creditors will convert Daewoo
International's debts of 375.8 billion won into equities,
reducing the trading firm's debt-to-equity ratio to 734
percent. Creditors will also swap Daewoo Construction's
debts of 727.5 billion won for equities to lower its debt-
to-equity ratio to 577 percent, the official said.

When registration for the spin-off is completed July 31,
Daewoo International specializing in trading will have
assets of 3.81 trillion won and liabilities of 3.35
trillion won, he said.  Daewoo Construction will have
assets and liabilities of 5.94 trillion won and 5.06
trillion won, respectively, while Daewoo Corp's assets will
amount to 3.11 trillion won with its liabilities standing
at 20.72 trillion won.

He added that a successful spin-off is expected to provide
a fresh momentum to the rehabilitation programs for 12
units of the Daewoo Group, which have been underway since
August last year.  Once the nation's second largest
conglomerate, Daewoo went belly-up in July last year under
the weight of heavy debts estimated at about 70 trillion
won. (Korea Herald  20-July-2000)

HYUNDAI ELECTRONICS INDUS.: Posts first-half loss
-------------------------------------------------
Hyundai Securities said yesterday Hyundai Electronics
Industries posted an ordinary loss in the first half
despite a 2,655 percent increase in operating profit.

According to the brokerage, the chipmaker's first-half
sales are estimated at 4.5 trillion won, up 101 percent
from last year, and its operating profit reached 670
billion won, with the operating profit ratio rising to 15
percent.

But despite this impressive performance, the company
recorded an ordinary loss because of 682 billion in non-
operating losses stemming from its exposure to Hyundai
Investment Trust & Securities, inventory valuation,
disposal of its plant in Scotland and sales of its
shareholdings in sister firms.

The brokerage said the company's ordinary and net profit
will surge next year because it has reflected most of its
non-operating losses on its financial statements in the
first half of the year.  (Korea Herald  20-July-2000)


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

LION CORP.: Minority s'holders seek stablizing position
-------------------------------------------------------
Some minority shareholders of Lion Corp Bhd are unhappy
with the company's RM5.3 billion debt restructuring
exercise which they say helps controlling shareholder Tan
Sri William Cheng consolidate his position at their
expense.

Upset that their interests will be heavily diluted while
Cheng's stake in the company remains intact, they are
looking to Lion Corp's single largest minority shareholder,
businessman Encik Mirzan Mahathir, in the hope that he will
negotiate better terms for them as a group.

Mirzan appears unlikely to make a move on the issue soon,
however, and will wait for independent advisors'
conclusions on the deal, said his representative on the
Lion Corp board, Mr Loo Hooi Keat.

"This deal will dilute his stake, but we would like to
reserve our judgement for now," Loo told Business Times in
a telephone interview.  "As the single largest minority
shareholder, Encik Mirzan will have a lot of say, but he
wants to look at the deal objectively," he said,
pointing out that voicing an opinion now may unfairly
pressure the independent advisors.

Mirzan currently owns about 20 per cent of Lion Corp, while
Cheng holds about 58 per cent.  The absence of details
makes a precise analysis of shareholdings difficult, but
Mirzan could see the 20 per cent stake he bought in 1995
more than halved to 8.4 per cent.

This is based on the assumption that its existing warrants
and a proposed issue of debt securities remain unconverted
into new shares, and also leaves out shares attached to
bonds that the company will issue to creditors.  Under the
deal unveiled two weeks ago, the dilution is largely due to
Lion Corp's proposal to consolidate its interest in
associate company Amsteel Corp Bhd.

Lion Corp said it will buy a chunk of Amsteel shares from
Cheng and related parties to help boost its 29-per cent
stake to 46 per cent after the debt restructuring. In
return, it will issue new shares and convertible debt
securities, giving him 63 per cent of the restructured Lion
Corp.

What troubles minority shareholders is how Cheng will get
the bulk of these Amsteel shares.  Cheng is proposing to
inject his 30-per cent interest in a related company,
Akurjaya Sdn Bhd, into Amsteel, and will receive 711
million new Amsteel shares in return.  Amsteel itself
already owns 70 per cent of Akurjaya, which in turn
holds 40 per cent of the Lion Group's hot-rolled steel
plant, Megasteel Sdn Bhd.

However, Akurjaya is planning to sell its interest in
Megasteel to Lion Corp for RM1.25 billion. Since Lion Corp
intends to set off inter-company loans owed by Amsteel as
part-payment, Akurjaya will eventually end up holding an
unspecified amount of Lion Corp bonds.  Lion Corp will
issue 110 million new shares and RM382.3 million in
irredeemable loan stocks (ICULS) to buy Cheng's Amsteel
shares, which come up to 888.07 million including shares he
already owns in the company.

Effectively, he will swap a 30-per cent interest in a
company that will eventually hold Lion Corp bonds - company
officials say Akurjaya owns other businesses too - for new
shares and debt securities in Lion Corp, helping him stay
in firm control of the entire group.  And a sale of these
debt securities may even help Cheng recoup part of RM200
million in cash he is pumping into the company.

In a written reply to Business Times, Lion Corp officials
said Cheng plans to sell to minority shareholders RM108
million worth, or about 28 per cent, of the loan stocks he
will receive.  The company said these ICULS will be offered
at RM1 each under the non- renounceable restricted offer,
on the basis of one ICULS for each share owned.

Lion Corp officials said the proposed offer will not be
underwritten, so Cheng will not get cash for any ICULS
which are not taken up under the offer.  "In this respect,
the proposed restricted offer for sale is not intended to
be an avenue for the offerors to raise cash," they said.

Still, Cheng is not the only one to swap shares in Amsteel
for those in Lion Corp. The Group is issuing 83.05 million
new shares to Lembaga Tabung Angkatan Tentera (LTAT) to buy
92.22 million Amsteel shares the armed forces' retirement
and welfare fund currently owns. LTAT will basically
exchange an existing 7.3 per cent stake in Amsteel for a 19
per cent interest in Lion Corp.

A disgruntled minority shareholder, who wants to be known
only as Mr Ee, argues that he and other small investors are
at a big disadvantage due to this issue of new Lion Corp
shares and convertible loan stocks. "It is unnecessary for
Lion Corp to consolidate its interest in Amsteel,
which is not going to be a large contributor (to group
earnings)," he said.

He sees the most immediate impact to Lion Corp's earnings
coming from Megasteel, which it will own entirely after the
exercise, and its paper and plywood division under Sabah
Forest Industries Sdn Bhd (SFI).  SFI's parent, second
board company Posim Bhd, is due to be taken private by
another unit in the group, steel bar maker Lion Land Bhd.

"We are being diluted because Lion Corp is issuing so many
shares to (increase) its Amsteel stake, and these Amsteel
shares are part of the RM700 million Cheng is supposed to
inject into the company as part of the debt restructuring,"
he pointed out. "These are all assets within the same
group."

Furthermore, the earnings per share would double without
the dilution.  "This EPS dilution is grossly unfair to
minority shareholders," Ee added.

Loo, Mirzan's representative on the Lion Corp board,
believes minority shareholders should consider other
features that could make the deal worthwhile before making
up their minds.  For one, the exercise results in Cheng's
interest concentrated at the holding company level, instead
of at almost every level currently.

"This will bring a cleaner structure and a clearer
decision-making process, since the potential for conflict
of interests are reduced," he argues.  "Aside from the
dilutive effect, this structure could be good (for the
longer term). If this exercise creates a lot of value, then
even a diluted interest will be worth more than it is now."
(Business Times  17-July-2000)


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

FIRST DOMINION PRIME HLDGS.: 5 investors keen on it
---------------------------------------------------
Five interested investors have formally started studying
prospects to acquire a stake in cash-strapped tuna exporter
First Dominion Prime Holdings, Inc.

In a recent telephone interview, a company official said
the investors have already started separate due diligence
audits since May.  "As we speak, they are now looking at
our numbers. Some of them started as early as May, the
others started in June," the company official told
BusinessWorld in a telephone interview.

The official, however, refused to name their interested
investors.  But BusinessWorld learned that of the five
which have expressed interest, three are Singapore-based
food companies while the remaining two are financial
investors based in the US and Canada.  The official refused
to say how large a stake the firm was willing to offer to
investors.

The source said investors had yet to forge a consensus with
the company on their purchase price for each share.
"We're still discussing the pricing of our shares," the
official said, saying their final offered selling price
will determine how large a stake will be opened up to new
investors.

The company official, however, added that some of their
interested investors have expressed concern over the raging
peace and order problem in Mindanao.  "The Muslim problem
is somehow not helping our cause especially since we are
based in Gensan (General Santos City)," said the official.

General Santos City, considered the Philippines' "tuna
capital," is one of several territories in Mindanao which
has suffered as a result of terrorist attacks from "Muslim
extremists. Some (of our prospective investors) have showed
concern but we've kept on reassuring them that Gensan is
still 90% Christian anyway and so we are still safe," the
source said.

First Dominion, the country's largest tuna exporter, has
started restructuring its two-billion-peso debt with its
creditor banks.  The company needs PhP800 million in fresh
capital to purchase needed raw materials and resume
operations at full capacity. First Dominion is currently
operating at 30 to 32% capacity.

The firm also intends to avail of proceeds from the
government's ERAP (Economic Recovery through Agricultural
Productivity) bonds to fill its equity requirement.
The government allows banks to buy government issued ERAP
bonds as an alternative means of complying with the Agri
Agra Law that requires banks to lend 25% of loanable
resources to the farming sector.

Proceeds from the government's flotation of the bonds are
then used to finance farm projects.  First Dominion
accounts for 42% of the country's overall daily canned tuna
production.  The Dee family holds a majority stake in First
Dominion which is also partly owned by the Government of
Singapore, and the Philippine Opportunities Fund, a mutual
fund based in the United States. (Business World  20-July-
2000)

PHILIPPINE NAT.BANK: Tan strengthens position with bid
------------------------------------------------------
Business tycoon Lucio Tan is going to be the most powerful
person in Philippine National Bank (PNB) after his
investment arm Starbuck Equities Corporation bid for the
government's 30-percent stake in PNB early Wednesday.

Department of Finance (DoF) undersecretary Cornelio Guizon
said Starbuck, the sole bidder for the government's stake,
submitted a bid for P100 per share or P6.27 billion at
10:45 a.m. Manila time, 15 minutes before the deadline at
11:00.

Sources said Starbuck settled for the 24-month installment
option, paid the required downpayment of P600 million, with
standby letters of credit (LOC) payable from September 18,
2000 to July 18, 2002. (ABS/CBn News Channel  19-July-2000)


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

SOGO SINGAPORE: Appoints interim judicial manager
-------------------------------------------------
Singapore branch of financially strapped Japanese retailer
Sogo has confirmed the appointment of interim judicial
managers from the firm of Ernst & Young.

The Sogo group of companies here has applied for judicial
management protection to help unravel liabilities amounting
to "several hundred million dollars," sources said.  The
Straits Times reported this move yesterday, a week after
the Japanese retail giant filed for court protection.
Ernst & Young has confirmed that three individual managers,
all partners in the firm, had been appointed yesterday by
the High Court.

They will advise Sogo Department Stores, SIDC and Tararone
Investments -- all companies in the Sogo group -- pending
the hearing of a judicial management petition in
approximately a month's time.  According to the judicial
management petition filed, Sogo Department Stores, which
operates the flagship outlet at Raffles City, faces
liabilities of some $115 million, with $20 million owed to
DBS Bank.

Tararone runs the Sogo Food Hall operations at Paragon
Shopping Centre and parent SIDC is an investment holding
company.  The interim judicial managers are Mr Ong Yew
Huat, Mr Nagaraj Sivaram and Mrs Fang Ai Lian.  All three
were involved in the similar winding-down of the Yaohan
Department Store operations, in 1997, that followed the
collapse of the Japanese parent due to massive debts.

Sogo's Japanese operations, which face some 1.87 trillion
yen (S$30.3 billion) of debt, filed for court protection
last Wednesday.  This was after the Japanese government
pulled the plug on a proposed 198 billion yen taxpayer-
funded bail-out.

The group's operations overseas were to be restructured,
although its outlets in Singapore were not expected to be
affected significantly.  However, in a shock announcement
two weeks ago, Sogo Department Stores disclosed that it had
failed to renew the lease of its outlet at Raffles City.
It has to vacate the premises at the end of the year.

Sources close to the case said that Sogo's retail business
in Singapore "had not been good recently" and it was facing
"cashflow problems."

"In the past, the company could rely on support from its
parent company," said Ernst & Young's Mr Ong. "With the
Japanese parent in trouble, the Singapore company decided
to file for interim management."

Ernst & Young's Mr Ong said that the appointment of the
judicial management team will allow the companies to
continue their operations while attempts are made to
identify buyers for the retail operations.

"Current operations in Singapore will carry on for the
immediate future," he said.  Sogo yesterday remained
uncontactable for comment for the second day in a row.
(Straits Times  20-July-2000)


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

DBS THAI DANU BANK: Posts narrower 6-mos.loss than last yr.
-----------------------------------------------------------
DBS Thai Danu Bank yesterday announced consolidated net
losses of 399.5 million baht for the first six months,
sharply down from losses of 9.9 billion baht incurred in
the same period last year.

Operating profits for the bank totalled seven million baht
for the first half, compared with losses of 600.4 million
baht in the same period last year.  Consolidated operating
losses totalled 30.3 million baht, primarily due to losses
at DBS Thai Danu Securities.  Provision levels stood at
14.9 billion baht, or 81.2% of its total requirement under
Bank of Thailand regulations.

Bank president Pornsanong Tuchinda said the bank was
awaiting the results of its plans to sell bad loans before
raising provisions to full levels.  He said net interest
margins for the bank improved to 1.46% in the first half,
up from 0.7% for the same period last year.  Assets at the
end of the first half totalled 106.8 billion baht and loans
stood at 92.8 billion baht. Total liabilities dropped to
90.8 billion baht at the end of June, compared with 103.9
billion at the end of 1999.

"We took many unpopular decisions, including reducing the
number of branches by a third and our staff by nearly 40%.
Coupled with other actions to build business and control
costs, these moves have brought us back to operating
profitability sooner than we had expected," Mr Pornsanong
said.

Shares of DBS Thai Danu on the Stock Exchange of Thailand
yesterday closed at 7.1 baht, up 10 satang, on turnover
worth 6.47 million baht. (The Bangkok Post  19-July-2000)

TOTAL ACCESS COMMOS.: Secures Bt20b loan from creditors
-------------------------------------------------------
Total Access Communication Plc (TAC) has vowed to step up
its war with arch rival Advanced Info Service (AIS) after
successfully securing a Bt20-billion syndicated loan from
its creditors yesterday.

The deal will allow TAC, the second largest mobile-phone
operator in Thailand, to refinance its debt and make it
more confident in taking on AIS, the largest mobile-phone
operator. TAC plans to issue a baht bond to retire the debt
from the syndicated loan.

TAC's future has been looking brighter since it forged a
strategic partnership deal with Telenor, a leading European
telecom company.  Sigve Brekke, managing director of
Telenor (Asia), said yesterday that Telenor would assign
its management team to the posts of chief executive, chief
operating officer and marketing head of TAC by next month.

"Most important is that we will also send our marketing
team to enhance TAC's performance," Brekke said. So far,
TAC has seen monthly net sales of 12,000 new handsets,
compared with AIS's 30,000.

Boonchai Bencharongkul, president and chief executive of
TAC, said the company will finish its financial and
marketing plan by the end of next month.  Telenor promised
to inject US$262 million (Bt10.53 billion) into TAC, of
which $80 million has been put in and another $182 million
will be provided in August.

Thanachai Thienachariya, vice president of TAC in charge of
the financial department, said the whole amount should
square off the $250 million debt owed to TAC's bank
creditors.

"After cleaning up this sum, TAC will have $12 million left
for investing in network expansion," he said. "We plan to
pour about Bt4 billion annually into this project."

Thanachai said that the Bt20-billion syndicated loan would
be for refinancing TAC's debt of Bt15 billion due in May
and November next year. The remainder will be pumped into
the network project.

"After meeting this Bt15 billion debt term, our $1 billion
total debt will be waived down to $700 million of which
$300 million will be US-denominated loans and $400 million
will be baht-denominated loans," Thanachai said.

He added that the debt-to-equity ratio would decline from
3:5 to 1:3 as of next month when Telenor injects the
promised funding.  TAC had mandated ABN Amro Bank, Siam
Commercial Bank, and SCB Securities to arrange a syndicated
loan.  The facilities consist of a Bt13 billion syndicated
term loan, a Bt3 billion revolving credit facility and a
Bt4 billion interim facility.  (The Nation  20-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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