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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

             Wednesday, July 26, 2000, Vol. 3, No. 144

                                   Headlines


* A U S T R A L I A *

LIBERTYONE: Settles two pending lawsuits, cost unknown
NATIONAL AUSTRALIA BANK: Fears hurting still ahead
NATIONAL AUSTRALIA BANK: Fights $51 billion claim
NORTH LTD.: Gov't okays Rio bid, Japanese firms protest
PIRRELLI CABLES: Plant closure, slowdown bring 1H loss


* C H I N A  &  H O N G  K O N G *

AIGLE LTD: Facing winding up petition
CHUNG TAI WINE & SPIRIT CO.: Facing winding up petition
DYNAPARK DEVELOPMENT LTD: Facing winding up petition
FINETEX TEXTILE (HK)LTD: Facing winding up petition
JIN RUN INVESTMENT TRADING CO.: Facing winding up petition
KWONG NGAI PHOTO& AUDIO CO.: Facing winding up petition


* I N D O N E S I A *

BOB HASAN: Gov't reviewing debt settlement pact
IBRAHIM RISYAD: Gov't reviewing debt settlement pact
PT DAVOMAS ABADI: Seeks payment suspension
PT MUSTIKA NIAGA TAMA NUSANTARA: Proposes rehab plan
SALIM GROUP: Gov't reviewing debt settlement pact
SJAMSUL NURSALIM: Gov't reviewing debt settlement pact
SUDWIKATMONO: Gov't reviewing debt settlement pact


* J A P A N *

TOHO MUTUAL INSURANCE: Files suit vs. two former execs


* K O R E A *

ALZZAMART.COM: To suspend operations
ANAM SEMICONDUCTOR: Cho Hung Bank to sell stake
DAEWOO CORP: Excluded from top 30 groups
DAEWOO GROUP: Former head, 20 execs to face indictment
DAEWOO GROUP: Gov't reaches agmt with foreign creditors
EUGENE TOUR: To be removed from workout program
HYUNDAI BUS.GROUP: Bond rating downgraded
HYUNDAI CAPITAL: Bond rating downgraded
HYUNDAI CORP.: Bond rating downgraded
HYUNDAI DEVELOP.CORP.: Bond rating downgraded
HYUNDAI ELECTRONICS: Bond rating downgraded
HYUNDAI ENGIN.& CONST.: Bond rating downgraded
HYUNDAI GROUP: Subsidiaries can't pay debts
HYUNDAI MOTOR : Bond rating downgraded
HYUNDAI PRECISION IND.: Bond rating downgraded
KANGWON INDUSTRIES: To be removed from workout program
LG GROUP: Subsidiaries can't pay debts
SAMSUNG GROUP: Subsidiaries can't pay debts


* M A L A Y S I A *

MALAYSIA BANK: In lowest close since Jan 6
MGI SECURITIES: SC approves revamp scheme
RED BOX BHD: Shareholders clear way for white knight
UNITED ENGINEERS: May exercise Renong share option


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

BW RESOURCES: New investors to infuse up to P5B
MONDRAGON INT'L PHIL.: Set to offer creds. rehab terms


* T H A I L A N D *

COUNTRY (Thailand): Faces opposition to rehab plan
CROWN SEAL PLC: Reports capital raise for debt rehab
EASTERN WIRE: Faces opposition to rehab plan
PROPERTY PERFECT PCL: Asks for rehab-deadline extension


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

LIBERTYONE: Settles two pending lawsuits, cost unknown
------------------------------------------------------
With the smoke of a takeover on the horizon, internet
investment house LibertyOne has ended separate legal
battles against two high-profile former employees.

Stoushes with former chief financial officer Allan Hyde and
co-founder of the Zivo web services division Martin
Lindstrom have both been settled in the past week.  The
exact outcomes of both are covered by non-disclosure
agreements but the financial impact on LibertyOne has not
been enough to warrant a notice to the Australian Stock
Exchange.

"Both the disputes have been discontinued with all parties
agreeing to non-disclosure," LibertyOne spokesman Chris
Muldoon said.

Mr Muldoon refused to say whether the settlement included
payouts on either side, or who picked up the costs.  It is
believed Mr Lindstrom received shares or options worth less
than $1 million in LibertyOne as a result of the
litigation. Potentially the most expensive was the
simmering battle with Mr Hyde, now employed at Peter Yip's
Chinadotcom, which failed to negotiate a friendly
acquisition of LibertyOne last September.

Mr Hyde departed LibertyOne earlier this year and is
believed to have sued for constructive dismissal,
reportedly alleging his role at the company had been so
severely marginalised he had no option but to leave.  The
exact details of Mr Hyde's claim are unknown, and he was
unavailable for comment on this report, but he is believed
to have demanded more than $500,000 in unpaid wages as well
as 1.3 million options in LibertyOne.

LibertyOne is then believed to have counter-sued for breach
of fiduciary duty and sought damages of $10 million.  Mr
Hyde reportedly threatened a second suit after details of
the dispute emerged after LibertyOne's fiery annual meeting
in April, during which the board was grilled by solicitor
Aleco Vrisakis - who was there as a voting proxy for former
LibertyOne chief executive Warren Lee and Mr Hyde's wife
Suzanne.

With both disputes out of the way, LibertyOne's legal
counsel may have more time to focus on an impending $113
million scrip-based takeover bid by US-based CyberSentry, a
provider of online micro-billing services.  LibertyOne
founder and chief executive Graham Bristow and
CyberSentry's New York-based chairman Frank Kristen have a
long professional association.

Coincidentally, at the time Tampa, Florida-based
CyberSentry was preparing its bid, Mr Bristow was
holidaying in the US.  However, Mr Bristow has not been
contactable and it is not known whether the two have yet
discussed the bid, which was confirmed by CyberSentry last
week only after reports emerged in newspapers around
Australia.

LibertyOne maintains it has not yet received a formal bid
from CyberSentry, which is embroiled in an investigation by
US securities regulators into an alleged "pump and dump"
trading scam by Mob-linked investors.  (The Australian 24-
July-2000)

NATIONAL AUSTRALIA BANK: Fears hurting still ahead
--------------------------------------------------
The multibillion-dollar court battle between National
Australia Bank and software designer Mr John Maconochie
begins in the NSW Supreme Court today, with investors
concerned that no matter what the result, the bank's share
price will suffer.

The long-running dispute will reach Justice Einstein's
courtroom this morning with opening arguments scheduled to
begin at 10am. Already the bank's share price has come
under attack. At one point last week, NAB shares were
trading more than 10 per cent lower than at the end of the
financial year. They have since slightly recovered to close
at $25.56 on Friday.

Bank management is hoping that third-quarter earnings
figures, due out on Thursday, will provide a boost to the
bank. Sharemarket analysts are predicting net earnings of
around $800 million for the three months to the end of
June.

Mr Maconochie and his companies, Idoport and Market
Holdings, are suing NAB over the development and
utilisation of a global automated trading system, known as
AUSMAQ. Mr Maconochie claims NAB has not paid him royalties
flowing from the use of the system. NAB says Mr
Maconochie's business plan was unachievable.

Mr Maconochie is expected to dominate proceedings for the
first fortnight. NAB executives expect bad publicity from
the case and agree the bank's share price could fall, but
they hope Thursday's result might deflect some negative
sentiment.  Macquarie Research Equities banking analyst Mr
Stephen Walsh, in a report to investors, predicted a third-
quarter profit of $816 million and a full-year net profit
of $3.2 billion.

"The Australian business should benefit from flatter
margins and strong asset (and related fee) growth," Mr
Walsh said. "Positive wealth management inflows into
National Australia Asset Management and County will also be
positive. Going forward spreads should be stable, although
there is potential for a slowdown in system growth."

Mr Walsh warned there was a possibility of continued under-
performance of the bank's UK subsidiaries, while business
at US-based Homeside is also expected to have slowed.

"Macquarie Research Equities expects a modest increase in
non-accrual loans, primarily due to unsecured personal
lending," Mr Walsh said. "We do not expect to see a
significant incremental deterioration of home lending
assets."

Credit Suisse First Boston banking analyst Mr Hugh Maxwell-
Davis predicted a third-quarter result of around $786
million, putting the bank on track for a full-year profit
of slightly less than $3.1 billion.  He said slower volume
growth, slightly lower margins, weakness at Homeside and
stable productivity would underpin the result.  (Australian
Financial Review 24-July-2000)

NATIONAL AUSTRALIA BANK: Fights $51 billion claim
-------------------------------------------------
One of Australia's largest corporate damages claims has
started in the Supreme Court in Sydney.

Australia's largest bank, the National Australia Bank, is
being sued by the developers of a trading systems platform,
AUSMAQ, which it purchased in 1996.  The bank paid
approximately $7 million for AUSMAQ - a partly automated
system for investing managed funds and debentures created
by two companies owned by Mr John Maconochie.

However, those companies now allege the product was not
developed to its full potential and are claiming up to a
$51 billion share of the profits they say it could have
generated.  The counsel for Mr Maconochie, John Garnsey QC,
says the case is unique for a number of reasons, including
the fact that it is the first time a court has been called
upon to value a lost e-commerce opportunity.  The case is
expected to last up to two years.  (ABC News On Line  24-
July-2000)

NORTH LTD.: Gov't okays Rio bid, Japanese firms protest
-------------------------------------------------------
London-based mining giant Rio Tinto achieved a small
victory in its $2.8 billion bid for mining and forestry
group North Ltd by securing Federal Government approval to
push ahead with its controversial offer.

The nod from Treasurer Peter Costello came as Japan's steel
companies escalated their attacks on Rio's scorned offer
for North, and shares in the target company soared in
anticipation of a higher offer.

The mills are now warning of the possibility of reprisals
if Rio manages to secure North and, through it, the Robe
River iron ore joint venture in Western Australia. While
its offer now has foreign investment approval, Rio is
believed to be pushing for the government to consider Anglo
American's rival offer, and the hand played by the
Japanese, as being against the national interest because of
the threats against a range of commodities produced by Rio
and the danger that presents to jobs.

The mills have become emboldened by Anglo's "white samurai"
bid for North at $4.20 a share, topping Rio's $3.80. North
shares yesterday touched $4.50 during trading, before
settling for a seven-cents gain at $4.41. The stock has now
risen more than 70per cent in value since the takeover
battle broke out.

Investment bank UBS Warburg yesterday revealed itself as
one of the big winners from the rise, disclosing that one
of its nominee companies had been stocking up heavily on
North shares, picking up about 12million in the past week
to bring the group holding to almost 53 million shares.

Warburg's average cost on the recent buying is believed to
be well below $4 a share, putting it well over $25 million
in profit on yesterday's price even if its gain is only
50cents a share.  Rio Tinto yesterday maintained its
refusal to comment on the Anglo offer, or The Tex Report's
commentary.

Its executives are still reviewing the Anglo bid, and a
"break fee" agreement with the North board, and are
believed to be considering approaching the Corporations and
Securities Panel over the issue. The Australian Securities
and Investments Commission is watching the action, but has
elected not to take any action.

Mr Costello said last night the government had no
objections on foreign investment policy grounds but it had
set key conditions about the future of North's forests
division in Tasmania. Mr Costello added that if North was
successful it must not make any material changes to the
operation of North Forest Products while a strategic review
was conducted, and it must consult with the Tasmanian
Government about its intentions and any proposed sale.

Mr Costello also said any sale by Rio Tinto of
"significant" North-owned assets to a foreign entity would
also require foreign investment approval.  The Tex Report,
widely regarded as a mouthpiece for the Japanese steel
mills, bucketed Rio yesterday for putting commercial
interests "ahead of the cardinal principle of a stable iron
ore supply espoused by customers."

It described the prospect of a Rio counter-bid as remote,
and warned that Rio would find it difficult to hang on to
the existing customer base at Robe River.

"Rio Tinto, which is not welcome in contrast to the `white
knight', would have a lot to lose in a takeover with little
possibility of quantity-based support by the steel mills,"
the report said.  "A retaliation by customers with
Hamersley iron ore is a matter of concern for Rio Tinto,
whose situation could most aptly be described as having the
whole world against it."

The mills have shown in the past their ability to use their
buying power against suppliers that they believe have
crossed them in some way.  Ominously, Tex advises Rio not
only to exit from the takeover play but "make an all-out
effort to regain customers' confidence".  (The Age  25-
July-2000)

PIRRELLI CABLES: Plant closure, slowdown bring 1H loss
------------------------------------------------------
Pirrelli Cables Australia has warned that factory closure
costs of $12 million and a slowdown in construction
activity would leave it with a first-half loss.

Sydney-based Pirelli, 51 per cent owned by Italian company
Pirelli, makes cables for the telecommunications and energy
markets. The company said yesterday the closure and planned
sale of its Minto plant, and the transfer of production to
its main Liverpool plant, would result in the abnormal loss
of $12 million.

The charge would cover relocation costs, redundancies,
write-offs of plant and equipment.  Pirelli Australia
Cables chief financial officer Joe Browne said slackening
demand in the construction industry and inefficiencies from
operating two energy cables plants was behind trading
losses in its energy cables business.

He said the lower demand was "linked to the construction
industry generally, and the five-year cycle of the
construction industry."  Mr Browne said the company had
anticipated the fall-off in demand, but "we've noticed it
happening a little bit sooner than we anticipated and a
little more severely . . ."

While demand for energy cables had slumped, PCAL said its
telecommunications division had traded profitably in the
six months to June 30. Mr Browne said the Minto plant was
due to close in late August and planned efficiencies would
start from September.

He said the Liverpool energy cable plant, bought last year,
had been made efficient enough to absorb production from
the Minto plant.  He declined to say whether the company
expected to be profitable in the full-year.

PCAL's first-half operating profit last year fell 46 per
cent to $2.6 million.  PCAL shares closed down 4.6c, or
about 7 per cent, to 62c.  (The Australian 25-July-2000)


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

AIGLE LTD: Facing winding up petition
-------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on September 14 on the petition of
Sin Hua Bank Limited for the winding up of Aigle Limited. A
notice of legal appearance must be filed on or before
September 13.

CHUNG TAI WINE & SPIRIT CO.: 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
Guangdong Foodstuffs Import & Export (Group) Corporation
for the winding up of Chung Tai Wine & Spirit Company
Limited. A notice of legal appearance must be filed on or
before August 15.

DYNAPARK DEVELOPMENT LTD: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on September 6 on the petition of
Sin Hua Bank Limited for the winding up of Dynapark
Development Limited. A notice of legal appearance must be
filed on or before September 5.

FINETEX TEXTILE (HK)LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on September 14 on the petition of
Sin Hua Bank Limited for the winding up of Finetex Textile
(Hong Kong) Limited. A notice of legal appearance must be
filed on or before September 13.

JIN RUN INVESTMENT TRADING CO.: 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
Nanyang Commercial Bank Limited for the winding up of Jin
Run Investment Trading Company Limited. A notice of legal
appearance must be filed on or before August 29.

KWONG NGAI PHOTO& AUDIO CO.: 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 Lam
Chi Ho for the winding up of Kwong Ngai Photo & Audio
Company Limited. A notice of legal appearance must be filed
on or before August 29.


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

BOB HASAN: Gov't reviewing debt settlement pact
IBRAHIM RISYAD: Gov't reviewing debt settlement pact
SALIM GROUP: Gov't reviewing debt settlement pact
SJAMSUL NURSALIM: Gov't reviewing debt settlement pact
SUDWIKATMONO: Gov't reviewing debt settlement pact
------------------------------------------------------
Coordinating Minister for the Economy, Finance and Industry
Kwik Kian Gie said on Monday the government was reviewing a
debt settlement agreement signed by former bank owners and
the Indonesian Bank Restructuring Agency (IBRA) last year.

Kwik said the agreement, reached during the administration
of former president B.J. Habibie, could cause the
government huge losses and burden tax payers.

"The Financial Sector Policy Committee (FSPC) is attempting
to cancel the agreement," he told members of the Supreme
Advisory Council during a hearing.

He said he expected the House of Representatives to support
the plan.  The FSPC, which groups several senior economic
ministers and the attorney general, has the final say on
key bank and corporate restructuring policies.  Kwik said
the government's team of lawyers, led by Kartini Mulyadi
and Fred Tumbuan, was still studying the legality of the
agreement.

The Master of Settlement and Acquisition Agreement, or
MSAA, which was signed by IBRA and former bank owners,
called for the bank owners to surrender their assets to
repay their debts to the government. IBRA signed the MSAA
after evaluating the assets and deciding they were
sufficient to cover the debts.

But according to the agreement, IBRA must cover the
remaining debts if the surrendered assets prove to be
insufficient.  The bank owners received massive liquidity
support from the government in 1998 and 1999 during runs on
the banks. The bank owners must repay the liquidity support
because the banks violated the legal lending limit by
channeling most of their money to affiliated business
groups.

The Salim Group, for example, has surrendered its ownership
in some 109 companies to settle the obligations of Bank
Central Asia, which owed the government some Rp 48
trillion.  Also signing the MSAA were Bob Hasan, a co-owner
of the now defunct Bank Umum Nasional; Sjamsul Nursalim,
the owner of the now closed Bank Dagang Nasional Indonesia;
and Ibrahim Risyad and Sudwikatmono, the owners of two
smaller nationalized banks.

In addition to the MSAA, IBRA also signed a Master of
Refinancing Agreement, or MRA, with several former bank
owners. This agreement was signed because the agency
believed the assets surrendered by these bankers were
insufficient to cover their obligations.

The MRA was signed by Usman Admadjaja, the former owner of
the nationalized Bank Danamon; and with the owners of the
now defunct Bank Hokindo, Bank Modern and the Ongko Group,
the other co-owner of Bank Umum Nasional.

Kwik said the MSAA would cause the government to suffer
losses because it turned out that the surrendered assets
were not enough to cover the obligations of the former bank
owners.  He also said bank owners cited the MSAA to refuse
to surrender additional assets as demanded by the
government.

Separately, Minister of Finance Bambang Sudibyo said on
Monday he had asked IBRA to recommend bankers who could be
removed from immigration's blacklist.  Bambang said those
bankers who qualified to be taken off the blacklist were
those who had cooperated with IBRA in settling their debts.

"A certain set of requirements should apply for releasing
those bankers, one of them is that they should first be
considered cooperative bankers," Bambang said after
attending the House of Representative's plenary meeting
which passed a new tax law.
Bambang hinted further requirements would be set by
President Abdurrahman Wahid.


The government sent the names of about 150 executives,
mostly from closed banks, to immigration in 1999,
preventing them from leaving the country for what the
government said was imprudent banking practices.  (Jakarta
Post 25-July-2000)

PT DAVOMAS ABADI: Seeks payment suspension
------------------------------------------
PT Davomas Abadi said it has appealed to a commercial court
to allow it to suspend repayment on its debts worth 57.5
mln usd and 43 bln rupiah under a debt restructuring plan.

Davomas Abadi president Hendrawan Setiadi said his company
has been unable to repay the debts due to the impact of the
economic crisis.

"Our company is still running. However, we need more time
to repay the debts," he said.

He said the request had been approved by shareholders
before it was submitted to the commercial court.  (AFX News
Limited 24-July-2000)

PT MUSTIKA NIAGA TAMA NUSANTARA: Proposes rehab plan
----------------------------------------------------
Humpuss Group unit PT Mustika Niaga Tama Nusantara said it
has proposed to the commercial courts a debt rescheduling
program following the Indonesian Bank Restructuring Agency
(IBRA) bankruptcy lawsuit against it.

Company lawyer Johan Azis said the company is requesting a
30-year extension on debt repayment and a grace period of 5
years.  Azis also said the company is contesting the amount
it owes to IBRA. It said its debts to the agency are only
31.5 bln rupiah, not 82 bln rupiah as claimed by IBRA.

He said the company, however, has debts to other
institutions, including 16 mln usd owed to Wister Trading,
216 bln rupiah to Indomas Pacific Finance and 29.6 bln
rupiah to closed bank Bank Umum Nasional.  (AFX News
Limited 24-July-2000)


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

TOHO MUTUAL INSURANCE: Files suit vs. two former execs
------------------------------------------------------
The failed second-tier Toho Mutual Life Insurance Co. on
Friday filed a lawsuit with the Tokyo District Court
seeking 1 billion yen in damages from former President
Seizo Ota and former Vice President Masanobu Tada.

This is the first time that a suit for damages has been
filed against former executives of a life insurance company
that has gone bankrupt. Toho Mutual Life Insurance, which
went under in June last year, had established a committee
to consider bringing a lawsuit against its former board of
directors.

The panel also investigated details of loans that Ota
approved by himself. The committee determined that Ota had
extended about 3 billion yen in loans through financial
institutions, including nonbanks, to a real estate firm
affiliated with Toho Mutual, and about 9 billion yen to
another asset management firm between 1990 and 1993.

Both companies were run by relatives of Ota. Of the 12
billion yen in loans, 6.4 billion yen became irrecoverable
because the two companies were liquidated between 1995 and
1997. The committee said the purpose of the loans remained
unclear.  The committee concluded that Ota arranged the
loans for his own benefit, which ran counter to his
responsibility as a director to work for the benefit of the
company. It also found that Tada colluded with Ota in
approving loans that financially damaged Toho Mutual.

The bankrupt life insurance company said it had received
about 36 million yen from 10 of its 36 former executives,
who were asked by Toho Mutual to return their retirement
allowances.  (The Yomiuri Shimbun /Daily Yomiuri  22-July-
2000)


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

ALZZAMART.COM: To suspend operations
------------------------------------
A leading internet shopping mall, alzzamart.com, announced
Saturday that it will suspend its online shopping services.
The company launched the business to retail shopping mall
services last year.

Its sales hovered around W4 billion a month, but sales
nose-dived when it severed a business alliance with a
nationwide supermarket association in June. The company
cited a serious liquidity shortage, which was driven by the
ongoing plunge in Korea­_s KOSDAQ market, as the reason for
suspension. The firm, however, said it will resume the e-
commerce shopping service as soon as the situation turns
for the better.

Industry observers expressed worries that the first ever
suspension of operations by a leading internet shopping
service company would bring forth many more bankruptcies in
the near future.  (Digital Chosun  23-July-2000)

ANAM SEMICONDUCTOR: Cho Hung Bank to sell stake
-----------------------------------------------
Cho Hung Bank plans to sell its holdings in Anam
Semiconductor, a producer of silicon wafers, to an overseas
company, the Korea Economic Daily reported, citing an
unidentified official at Anam's main creditor, which holds
about 16.6 percent of the firm.

Negotiations are taking place with three U.S. semiconductor
companies, with Cho Hung asking for 35,000 won for each
Anam share, valuing the stake at as much as 598 billion won
($537 million), the paper said. Cho Hung is planning
another debt-for-equity to swap of 1.65 million shares this
October, KED reported.

Anam Semiconductor, which closed at 9,800 won yesterday,
graduated from a bank-controlled debt restructuring program
last week, 14 months after its management said it could no
longer pay its debts.  (Bloomberg  25-July-2000)

DAEWOO CORP: Excluded from top 30 groups
----------------------------------------
Daewoo Corp., which ranked as the 7th largest conglomerate
as of the end of March this year, will be excluded from the
top 30 business group list, the Fair Trade Commission (FTC)
said yesterday.

According to the antitrust watchdog, Daewoo no longer
qualifies as a conglomerate because it has no subsidiaries.
Despite its 13.1 trillion won in assets, Daewoo Corp.'s
liquidation of its 39 percent stake in Daewoo Development
Corp. earlier this year, excluded it from meeting
qualifications for top-30 membership, FTC officials said.

Once the nation's second largest conglomerate in terms of
assets, Daewoo went belly-up in July last year under the
weight of huge debts estimated to reach around 80 trillion
won. (Korea Herald 25-July-2000)

DAEWOO GROUP: Former head, 20 execs to face indictment
------------------------------------------------------
Kim Woo-choong, former chairman of the bankrupt Daewoo
Group, and 30 other former and incumbent executives along
with accounts will likely be indicted for their alleged
role in bringing down the country's former No.2 business
conglomerate.

Based on its probe so far, the Financial Supervisory
Commission (FSC) said yesterday that it is considering
closing one accounting firm for its failure to account for
23 trillion won in nonperforming assets.

An FSC official said, "We will make formal announcement of
persons to be punished early next month when our
investigation is completed."

The FSC probe found that 12 Daewoo affiliates now under the
debt workout program has a shortfall of 42.9 trillion won
in net assets, 23 trillion won of it being attributed to
accounting errors such as over- estimation or under-
estiimation.

Accordingly, the FSC is expected to sue 25-26 present and
former Daewoo executives including its former chairman Kim
Woo-choong and five to six accountants.  The financial
regulator said that one of three accounting firms will be
closed on negligence of duty.

However, the degree of punishment both for the Daewoo
executives and accountants will be determined in
consultation with related organizations.  The FSC had
originally planned to take legal action this month but
decided to postpone it to late next month, considering work
concerning the sale of Daewoo Motor, among other things.
(Korea Times  21-July-2000)

DAEWOO GROUP: Gov't reaches agmt with foreign creditors
-------------------------------------------------------
The government has secured sufficient approvals from
foreign creditors of Daewoo Group to buy out 4.4 bln usd of
unsecured foreign debt at 30-40 percent of face value, a
Daewoo restructuring committee spokesman said.

"We've received enough tenders from foreign creditors to
complete the debt buyout deal," the official said, although
full details of the buyout have yet to be determined.

The debt to be bought out is owed by five Daewoo units, the
spokesman said.  Earlier, Yonhap News reported that foreign
creditors agreed to sell 3.92 bln usd of foreign debt by
the July 21 deadline.  The Daewoo official said the
committee will provide further details tomorrow.  (AFX News
Limited  24-July-2000)

EUGENE TOUR: To be removed from workout program
KANGWON INDUSTRIES: To be removed from workout program
---------------------------------------------
The government plans to eject 23 firms of the total 69
companies currently undergoing workout programs, including
Eugene Tour and Kangwon Industries, which are to be
liquidated or sold.

As a result, the 69 will be reduced to 46, including 12 of
Daewoo Business Group's subsidiaries. Chairman Lee Yong-kun
of the Financial Supervisory Commission (FSC) reported to
the National Assembly members Monday that the 23 firms will
be removed from the bailout program by the end of next
month. Lee said some of the 23 have become healthy enough
to stand alone, while others will be liquidated.

Fourteen firms are to graduate from the workout programs
with greatly improved financial status, including Dong
Bang, Dong Yang Trading, Sung Chang Enterprise, Byucksan,
Miju Metal, Shinsong Food, Muhak, Hwasung Industry, Seoul
Trad Club and Ildong Pharmaceutical.

A total of 104 firms, including 12 subsidiaries of Daewoo,
have been placed on workout programs since July 1998, and
as of last April, 26 of them had been removed.  (Digital
Chosun 24-July-2000)

HYUNDAI GROUP: Subsidiaries can't pay debts
LG GROUP: Subsidiaries can't pay debts
SAMSUNG GROUP: Subsidiaries can't pay debts
-------------------------------------------
Twenty-four marginal subsidiaries of the top three business
groups, including Hyundai, Samsung and LG, have very weak
financial structures, in which even their operation profits
cannot pay off their financial obligations including
interest, according to an economic think tank.

Eighteen of them, including Daewoo Electronic Parts, Kohap
and Kabool Textile, have been unable to pay interest for
three consecutive years, from 1997 to 1999, despite huge
injections of taxpayer money to bailout companies since the
financial crisis which erupted at the end of 1997.

The state-run Korea Development Institute (KDI) issued a
report Sunday detailing the non-viable operation of
subsidiaries of chaebols and firms on workout programs and
called for a revamping of the existing workout regulations,
as these regulations have failed to meet expectations. The
report claimed that the average ratio of the operation
income or debt service ratio (DSR) stood at 1.8 times the
interest payment on average last year for Korean firms, far
worse than the average four times in advanced countries.

The report claimed that the ratio is far worse than the
average two to four times in major Southeast Asian
countries, including Thailand, Indonesia and Malaysia. KDI
said the report was made from a survey of 4,800 firms,
concentrating on the non-viable aspects of their
operations. The report estimated that they had a total W112
trillion debt as of last year. Of these companies, the
marginal firms, whose operation profits cannot pay off any
interest, have incurred a total of W63 trillion in hidden
bad debt.

Among Korea's business groups the number with a DSR less
than 1.0 has risen from 12 in 1995 to 21 in 1996, 43 in
1997, and then tailed off to 41 in 1998. In 1999 it fell to
21 namely; Daewoo, Hansol Paper Mills, Hanbo, Haitai,
Jinro, Kohap, Shinho, Songshin, Woosung Construction,
Hanil, Woobang, Songwon Construction, Kabool, Jindo,
Samhwan, Konyoung, Shinwon, Shindongbang, Chongu and
Hanshin Gongryong.

There are a total of 362 subsidiaries belonging to these
groups with a DSR less than 1.0 for three years and have
been listed to receive no more loans, and experts say
recovering those already given is next to impossible.

Twenty-four of the subsidiaries at Hyundai, Samsung, LG and
SK have total non-performing debts of W20.5 trillion. The
most troubled companies include Hyundai Construction (a DSR
of 0.71 at W5.1618 trillion), Hyundai Petrochemical (0.8 at
W2.6705 trillion) and Hyundai's Inchon Refinery (0.49 at
W1.5116 trillion).

The overall DSR for the four groups are 3.0 for LG, 2.6 for
Samsung, 1.8 for SK and 1.2 for Hyundai. The report added
that 18 businesses on workout programs have either failed
to pay interest on loans over the past three years, or only
made partial payments. They are Kohap, Kabool, Kabool
Textiles, Jindo, Shindongbang, Shinwon, Dongbang T&C,
Donghwa Duty Free Shop, Tongyang Steel Pipe, Saepoong,
Maxon Electronics, Chungnam Textiles, Namsun Aluminium and
Youngchang Musical Instruments.

Doctor Choi Gong-pil of the Korea Financial Institute said
that the fact that management did not improve despite
massive injections of public cash shows that restructuring
is flawed. Choi advised liquidating these companies that
are causing financial instability in order to correct and
enhance financial restructuring ( Digital Chosun 24- July-
2000)

HYUNDAI BUS.GROUP: Bond rating downgraded
HYUNDAI CAPITAL: Bond rating downgraded
HYUNDAI CORP.: Bond rating downgraded
HYUNDAI DEVELOP.CORP.: Bond rating downgraded
HYUNDAI ELECTRONICS: Bond rating downgraded
HYUNDAI ENGIN.& CONST.: Bond rating downgraded
HYUNDAI MOTOR : Bond rating downgraded
HYUNDAI PRECISION IND.: Bond rating downgraded
----------------------------------------------
The Korea Management Consulting & Credit Rating Corp.
(KMCC) downgraded Monday its corporate bond ratings of
eight core subsidiaries of Hyundai Business Group,
including Hyundai Engineering and Construction (HEC) and
Korea Development Corp. (KDC).

The downgrade saw the ratings of the two Hyundai
subsidiaries fall to an ineligible level for investment.
Other affected Hyundai subsidiaries include Hyundai Corp.,
Hyundai Electronics, Hyundai Capital, Hyundai Precision
Ind. and Hyundai Motor, however, they remained at the
investment eligible grade.

One official at KMCC said although Hyundai subsidiaries
have put efforts to regain market trust into high gear,
they have not been successful, due largely to Hyundai's
failure to honor its plan to spin off its motor
subsidiaries.

Korea Exchange Bank (KEB), the major credit bank for the
Hyundai Business Group, has shown a strong resistance to
the KMCC's downgrade, claiming that the downgrade could
trigger more of a credit crunch in the nation's largest
business group. (Digital Chosun 24-July-2000)


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

MALAYSIA BANK: In lowest close since Jan 6
------------------------------------------
Malaysia Bank (Maybank), the third biggest stock in the key
Kuala Lumpur Stock Exchange index, shed 60 sen or 4 per
cent to RM14.10, its lowest finish since Jan 6. Volume was
a moderate 1.6 million shares.

"Foreign funds are taking profits, and we could see more
downside. There's still more to sell," a dealer at a local
brokerage said.

Some dealers also said the stock was being unloaded ahead
of efforts to save a deal to take over Phileo Allied, a
plan being opposed by Phileo's key shareholder Avenue
Assets. Avenue has opposed the plan due to poor valuations.
-- Reuters Magnum lower after last week's rise GAMING firm
Magnum Corp ended down 13 sen at RM2.72 on 5.7 million
shares traded yesterday.

The drop came after the counter soared 16 per cent last
week on talk a new shareholder would buy the company. But
after the market close, Magnum said its key shareholder
Multi-Purpose had not been approached nor was it in talks
with any possible buyers for Magnum.  (Reuters, Business
Times  25-July-2000)

MGI SECURITIES: SC approves revamp scheme
-----------------------------------------
Malaysian General Investment Corp Bhd (MGIC) has received
approval from the Securities Commission (SC) on the
restructuring scheme of MGI Securities Sdn Bhd by special
administrators appointed by Pengurusan Danaharta Nasional
Bhd.

MGIC said in a statement to the KLSE yesterday that the
approval was granted subject to the following conditions:
--Avenue Assets Bhd, with whom the two companies had signed
a subscription agreement, is to acquire 100% equity
interest in MGI Securities.
--The shareholders' funds of Avenue Assets must be
increased to at least RM100mil to meet the rules of the
KLSE.
--Avenue Assets is required to submit to the SC its
plan to raise the RM100mil under the call and put option
for MGI Securities debt instrument in the workout proposal
formulated by the special administrators.
--Avenue Assets as the holding company of MGI Securities
and the Avenue Assets group should not engage in property
development, investment and construction in line with the
revised policy framework on stockbroking industry
consolidation.

The relevant parties to the workout proposal formulated by
the special administrators are required to give an
undertaking to the SC to merge the operations of MGI
Securities and Kestrel Securities Sdn Bhd.

According to the MGIC statement, the proposed MGI
Securities restructuring scheme is in the midst of being
revised to take into consideration the conditions imposed
by the SC. The special administrators are currently
reviewing and finalising the terms of these revisions.

MGIC also announced that MGI Securities, for whom special
administrators had been appointed, and Avenue Assets had
subsequently entered into the conditional share sale
agreements for acquisition of entire issed and paid-up
capital of Soon Theam Securities Sdn Bhd and Kestrel
Securities.

The purchase amount for Soon Theam Securities, via cash,
will be based on the aggregate of RM67mil and the audited
net tangible assets of the brokerage to be determined by a
due diligence audit. As at March 31, the audited NTA of
Soon Theam Securities is RM56.3mil.

On the Kestrel Securities acquisition, the purchase amount
will be based on 200% of the audited NTA of the brokerage
to be determined by a due diligence audit.  The unaudited
NTA of Kestrel Securities as at June 16 is RM57.3mil.  (The
Star 25-July-2000)

RED BOX BHD: Shareholders clear way for white knight
----------------------------------------------------
Shareholders of debt-laden Red Box (M) Bhd have cleared the
way for the entry of a white knight, in the form of Asia
Pacific Latex Bhd (APL), as part of the group's
restructuring scheme.

The scheme, which was announced a year ago and approved at
Red Box's EGM yesterday, will see a reverse takeover of the
company and a back-door listing for latex gloves
manufacturer APL via a newly incorporated company, APL
Industries Bhd (APLI). The restructuring will result in Red
Box, APLI and its 70%-owned subsidiary APL Products Sdn Bhd
becoming subsidiaries of APLI, which will assume the
listing status of Red Box.

According to APL's merchant banker, Perwira Affin Merchant
Bank Bhd, the company is now awaiting KLSE approval for the
listing of APLI.  The restructuring exercise, which would
from now on be purely administrative in nature, would take
about two to three months to complete, said Red Box
executive director Ho Cheng Leong.

Ho said the restructuring scheme had been recognised as a
good deal. APL was well established and had in the past few
years seen tremendously growth in turnover, mainly from its
export business, he added.  If successfully implemented,
the exercise would lead to an immediate turnaround for the
Red Box group, and a net profit of RM76.6mil for the year
ending June 30, 2001, was expected.

The Red Box's loss-making photo-album business, including
the entire shareholdings of wholly-owned subsidiaries Red
Box (Choan) Stationery Co Ltd, OQ Sdn Bhd and H. Mark Sdn
Bhd group of companies (excluding Red Box Leisure Sdn Bhd),
would be sold to Distinct Innovations Sdn Bhd for RM11mil.
Three other wholly-owned subsidiaries--Red Box Leisure,
property-based Bestjoh Sdn Bhd and marketing services
office Red Box Overseas Pte Ltd--will be liquidated.

The APLI group's new core activity--namely APL's latex
gloves manufacturing and trading activities--was expected
to substantially improve its future earnings and cashflow,
said Ho.  The current Red Box management team, appointed
some three and half years ago, would be replaced by an
entirely new team.

Under the scheme, the entire issued and paid-up capital of
Red Box of RM65mil would be cancelled, giving rise to a
credit of RM65mil. Of this credit, RM6.5mil would be used
to pay in full at par 6.5 million new shares that would be
credited as fully paid to APLI, while the balance would be
used to settle Red Box's audited accumulated losses of
RM104.97mil as at Jan 31 this year.

In consideration for the cancellation of the shares, APLI
would allot and issue to the shareholders of Red Box one
new APLI share for every 10 Red Box shares held prior to
the capital reconstruction. There would also be a
restricted offer for sale of 6.5 million APLI warrants and
13 million APLI shares to shareholders of Red Box.

Red Box had been plagued by continuous losses for the past
five financial years. Trading of its shares on the KLSE was
suspended on June 10, 1998, with their last transaction
price at 41 sen.   (The Star  25-July-2000)

UNITED ENGINEERS: May exercise Renong share option
----------------------------------------------------
Malaysian tycoon Halim Saad now faces a strong prospect of
having to buy a block of Renong Bhd shares from United
Engineers Malaysia for almost RM3 billion (S$1.4 billion).

According to The Edge over the weekend, the listing of Plus
-- the operator of the North-South Highway and a subsidiary
of UEM -- has been postponed to next year. The financial
weekly said the postponement could be due to a delay in the
completion of a traffic study report on Plus. It did not
elaborate, and UEM has remained silent so far.

UEM had wanted to float Plus this year to help repay the
highway operator. Plus had issued RM8.4 billion worth of
bonds to shave UEM's debts of RM3 billion and another RM5.4
billion chalked up by Renong last year.

Analysts said the delay of the Plus initial public
offering, if true, would hamper UEM's ability to repay Plus
as soon as possible and save on substantial interest cost.
They added that instead of chalking up more interest
charges, UEM should now seriously consider its option to
force Mr Halim to buy the 32.3 per cent block of Renong
shares back from UEM when the option expires early next
year.

This is because UEM could ask Mr Halim to buy the Renong
shares at UEM's cost of about RM4 apiece -- substantially
higher than Renong's price of RM1.98 yesterday. If
exercised, Mr Halim would have to cough up RM2.9 billion.
UEM had incurred the bulk of its short-term debts when it
bought 721 million Renong shares from unknown shareholders
for RM2.3 billion, or at RM3.24 apiece, in 1997. The move
incensed minority shareholders which felt that UEM had
bailed out certain Renong shareholders.

Following an uproar over the transaction, Mr Halim -- who
controls both Renong and UEM -- defended UEM's decision and
gave it an undertaking that he would buy the shares,
including paying the holding cost, if Renong's share price
remained below RM3.24 apiece by Feb 14 next year.

Plus is the main income generator for the Renong-UEM
stable. UEM managing director Ramli Mohamad had earlier
estimated Plus to be worth RM15 billion. A divestment of a
30 per cent stake could rake in RM4.5 billion -- more than
enough to remove UEM's obligations to Plus. The final
valuation, however, hinges on the crucial report of actual
traffic flows on the 848-km highway. (Business Times  25-
July-2000)


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

BW RESOURCES: New investors to infuse up to P5B
-----------------------------------------------
A consortium of local and foreign investors is expected to
infuse between P3 billion to P5 billion in fresh capital by
November this year in the defunct B.W. Resources Corp. now
known as Fairmont Holdings Inc.

This will represent a 40- to 60-percent stake in the
company, industry sources told The STAR yesterday. This
information was confirmed by Jose Reyes, EVP and COO of
PentaCapital Investment Corp., the financial advisor of the
controversial gaming firm. However, he refused to divulge
the identities of the investors saying it might jeopardize
ongoing negotiations. He said these companies are engaged
in IT and gaming operations.

"There is an informal consortium of both local and foreign
investors that will infuse new capital into the company
sometime in November," Reyes said.

The consortium, he said would be 60 percent owned by a
group of Filipino investors and 40 percent by foreign
businessmen. Existing rules limit foreign ownership in
local firms to 40 percent.  The foreign investors are
mostly Asian and sources said these are Chinese businessmen
based in Hong Kong. Reyes refused to comment on this.

However, he said the new investors, would come in by
subscribing to the stock rights offering that will be
called by the company sometime in the fourth quarter of the
year. He said existing shareholders will be allowed to
subscribe in the offering to prevent a dilution of their
existing equity in Fairmont.

Reyes said some shareholders, including the group of Dante
Tan and Macau casino operator Stanley Ho, have already
signified their intention not to subscribe to the offering.
While property developer Megaworld, which controls around
72 percent of the company, is still "thinking about it."
Tan owns some 10 to 15 percent of the firm.

"If these shareholders will not subscribe to it, some 40 to
60 percent will be available for the new investors," he
said.

Sources said Ho would get out of the firm after mounting
oppositions against his entry in the Philippines. On the
other hand, Megaworld is likely to allow the dilution of
its shares since it wants to concentrate on its core
business which is property development.

Once the new investors are in, Roxas said the firm could
continue the development of its 8,000 square-meter project
along Roxas Boulevard, a casino, hotel and entertainment
complex known as Sheraton Marina. Its construction was
temporarily halted due to the controversy that hounded BW.

Top BW officials and some investors are accused by the
Securities and Exchange Commission stock prices at the
Philippine Stock Exchange. The charge sheet has already
been forwarded by the SEC to the Department of Justice.

"Right now, we are just a shell company with no formal
projects," Reyes said. "We are not engaged in anything. But
we will continue the development of Sheraton Marina once
the new investors have come in and we have recapitalized
the firm," he added.  (Philippine Star  25-July-2000)

MONDRAGON INT'L PHIL.: Set to offer creds. rehab terms
------------------------------------------------------
After securing funding to pay off obligations to the
government, debt-laden resort operator Mondragon
International Philippines, Inc. (MIPI) is now set to meet
with more than 25 creditors to restructure its six-billion-
peso (US$135 million at PhP44.529:US$1) total debt.

A well-placed source told BusinessWorld yesterday the
company has called for a creditors' meeting on Wednesday to
form a committee which will draft the terms for the
Mondragon group's debt restructuring program.

"We will form a committee of creditors which will determine
the preliminary restructuring terms. During the meeting we
will also ask for a formal moratorium as well as inform the
creditors of recent developments such as the investment of
PentaCapital. Because we have to clean up the company first
before the investors come in," the source said.

The source said the management, led by MIPI chairman and
chief executive officer Jose Antonio Gonzales, will ask its
creditors to give it between eight to 10 years to pay its
debts with interest of about 8%.  MIPI will also negotiate
for an equity conversion as well as partial dacion en pago
arrangement or asset-for-share involving some of the
Mondragon group's assets together with properties owned by
Mr. Gonzales.

The source, however, said the management has yet to
determine how much equity it is willing to give up to
creditors and which properties will be included in the
debt-for-asset swap arrangement.

However, creditor banks of Mondragon International
Philippines, Inc. (MIPI) may bargain for shorter repayment
schedule and higher interest rates when it meets with the
listed leisure firm tomorrow.

A source from one of the creditor banks said MIPI should
narrow the repayment period to five years instead of the
planned eight- to 10-year term. "It's (the term is) too
long... They will have to support the proposal with a cash
flow projection," a banking source said.

The proposed 8% interest rate is also deemed "too low" and
should be pegged at least a few percentage points over the
prevailing 91-day Treasury-bill (T-bill) rate.  At
yesterday's weekly auction, the bellweather 91-day bill
fetched 8.919% up 29 basis points from 8.890% previously.
The source added not all banks may be able to convert a
portion of their loans into equity in MIPI.

The Bangko Sentral (Central Bank of the Philippines) limits
universal banks' total equity investments to a maximum of
50% of a bank's net worth. Equity investments in a single
entity, meanwhile, should not exceed 25% of the bank's
total net worth.  The creditor banks may be amenable to a
dacion en pago or payment in kind arrangement.

However, the source said banks have yet to find assets
registered under MIPI chairman and chief executive officer
Jose Antonio Gonzales' name.  Of the 25 creditor banks,
about 20 are unsecured or semi-secured by equipment,
country club and golf club shares.

The semi-secured and unsecured creditors have a combined
PhP1.9 billion in exposure to MIPI.  The group's PhP6-
billion debt consists of secured and unsecured loans owed
to 25 creditors and investment houses.  Last week,
PentaCapital Investment Corp. agreed to provide PhP650
million to MIPI to settle debts owed to Clark Development
Corp. (CDC) and the Philippine Amusement and Gaming Corp.
(Pagcor).

Under the memorandum of agreement, PentaCapital has agreed
to arrange for the group a fully secured last-in first-out
term loan which will be used to settle back rentals with
CDC, gaming levies owed to Pagcor, and fees due to the
Bureau of Internal Revenue (BIR).

MIPI owes CDC some PhP325 million in rental fees. CDC inked
a lease agreement with Mondragon in 1994 for the
development of the Mimosa Estate. The company also has to
pay around PhP105 million to Pagcor and BIR. working
capital

A portion of PentaCapital's investment will also be used to
fund the group's working capital requirements to re-open
casino operations.  The source said the debt payment is a
must before prospective a white knight finally infuse
equity into MIPI.

"We haven't finalized anything with the investors because
we want the group debt-free before they come in. We're
still talking with a combination of local and foreign
property and leisure firms who believe in the potential of
Mimosa," the source said.

Talks are rife the management is close to finalizing talks
with a prospective white knight willing to take a 40% stake
in the debt-laden resort operator for $100 million to $200
million.  Resort arm Mondragon Leisure and Resort Corp.
used to operate the Mimosa casino and hotel complex in the
former Clark Airbase.

The casino has been shut since 1998 when the government
took away the firm's gaming license after it failed to pay
rental dues.  (Business World  25-July-2000)


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

COUNTRY (Thailand): Faces opposition to rehab plan
EASTERN WIRE: Faces opposition to rehab plan
--------------------------------------------------
Country (Thailand)'s Bt12 billion restructuring plan faced
opposition from creditors as well as its former clients at
the first hearing at the Central Bankruptcy Court
yesterday, while creditors of Eastern Wire also were
opposed to its company's rehabilitation plan, which
involves restructuring Bt1.8 billion of debt.

Yesterday, the plan by Country, a once-prosperous property
development company, was opposed by Krung Thai Bank, its
largest creditor. KTB extended loans of Bt9 billion to
Country, whose assets now amount to only Bt4 billion.
Country's total outstanding loans with all its creditors
total Bt12 billion.

"The company faces a financial dilemma due to mismanagement
and a liquidity shortage. It is uncertain whether the
company will be able to continue to do business and reap
profits," KTB said in its petition to the Bankruptcy Court
explaining why the court should not approve Country's
rehabilitation plan.

However, KTB made an extraordinary offer to Country. The
bank said it was willing to reduce a portion of debt in
return for Country agreeing to transfer all of its assets
to the bank and allowing KTB to draw up a rehabilitation
plan.

Executives of both sides are negotiating the details of the
offer, KTB said.  Meanwhile, Piboon & Associates, which
represents the Consumer Protection Board, filed a petition
with the court calling for Country to return down-payments
to 79 homebuyers who bought housing units in its 43-rai
Country Village On Nuj project.

The law office said the customers were legitimate creditors
of Country, as they had completed making down-payments,
while the company never finished their houses. The problem
began when Country transferred the project to Asia Credit
in return for debt repayment.

Asia Credit then sold the project to Lalin Land & Houses Co
for Bt108 million. When Lalin took over, it demanded the
homebuyers make additional down-payments. This prompted the
customers to file complaints with the Consumer Protection
Board seeking the full return of their payments.

Meanwhile, creditors of Eastern Wire, led by Ocean
Insurance, the second largest creditor after Standard
Chartered Nakornthon Bank, filed a petition with the
Central Bankruptcy Court opposing the company's
rehabilitation plan.

Representing creditors, Ocean Insurance filed a petition
with the court on July 20 alleging some executives of
Eastern Wire had embezzled assets and cash without
creditors' endorsement, and allegedly causing creditors to
suffer financial damage.

"Eastern Wire has no reason to rehabilitate itself, given
that the company has had tight liquidity since 1993," Ocean
Insurance said in its petition.

Ocean also said Eastern Wire had failed to state the source
of the funds it would use to support its rehabilitation
plan. Eastern Wire also failed to indicate how the company
would continue operating and how it would repay its debts.
Creditors said in the petition that during negotiations
with creditors under the supervision of the Corporate Debt
Restructuring Advisory Committee, Eastern Wire failed to
provide full cooperation.

The petition also stated that creditors who account for 78
per cent of loans to Eastern Wire voted against the debt
restructuring plan on November 2, 1999, which resulted in
the company being sued under the bankruptcy law.

Eastern Wire filed a rehabilitation plan on June 26, 2000.
In the plan, it said outstanding loans totalled Bt1.8
billion against Bt770 million in assets and Bt179 million
in paid-up capital. Rehabilitation & Legal Consultant Co
Ltd was named as the planner.

In its plan, Eastern Wire said with an injection of
liquidity, rehabilitation would succeed. It explained that
its optimism was well founded based on the fact that
Eastern Wire is the only manufacturer of rubber moulding in
the country.  The company's planner said there was no other
alternative than approving the plan.

"If the court does not grant permission for the company to
proceed with rehabilitation, the company will go bankrupt
and its assets will be liquidated."

The Valuation Consultant Co Ltd, an independent valuation
firm, estimated that Eastern Wire's assets are worth only
Bt156 million, while the company's debt is Bt1.8 billion.
The company said that liquidation would result in a loss to
creditors of around Bt1.66 billion.  (The Nation  25-July-
2000)

CROWN SEAL PLC: Reports capital raise for debt rehab
----------------------------------------------------
At the Extraordinary General Meeting of Shareholders of
Crown Seal Public Company Limited (The "Company") held on
6th January, 2000, shareholders passed the resolution to
increase the registered capital of the Company by Baht
520,000,000,divided into two allocations.

The company, through Pramude Buranasiri, Director, further
reports that the first allocation of Baht 260,000,000 in of
26,000,000 ordinary shares at the price of Baht 10 each,
were offered to the existing shareholder on 22nd March,
2000 at the ratio of 1 existing share to 1 new ordinary
share.

The Company had received fund from the capital increase
amounting to 260 Million Baht, or at 257.85 Million Baht
net after expenses. The objectives of the capital increase
were informed to the Stock Exchange of Thailand previously.
The Company plans to use the funds for payment on a long-
term loan in accordance with the conditions in the previous
restructuring of debt the whole amount of 257.85 million
baht.  (The Stock Exchange of Thailand  24-July-2000)

PROPERTY PERFECT PCL: Asks for rehab-deadline extension
-------------------------------------------------------
Property Perfect Public Company Limited, through Chainid N.
Sirimanee, Chief Executive Officer, has asked the Stock
Exchange of Thailand for an extension of its debt
restructuring deadline.

The SET previously has extended the deadline for debt
restructuring of the company for 6 months, which ended
June 30, 2000. SET encouraged the company to speed up its
process with a report on its progress. The company reported
that it expended "extreme effort over the past extended
period."

However, the number of its creditors, which is as high as
200 and includes commercial banks, finance companies,
mutual funds, domestic and international debentures holders
(secured, unsecured, ECDs), and trade creditors, is the
major factor that has caused the process to be relatively
slow as they have different terms and conditions.

The negotiation is therefore inevitably lengthy and
complicated. Further, the contact with debentures holders
overseas has been difficult especially those that already
transferred their ownership to others. Nevertheless, the
company has made a great deal of progress in analyzing and
contemplating requirements of creditors in all tranches.

Moreover, it has been successful in restructuring with a
few financial institutions, for instance, debt-asset swap
with secured creditors.  At the same time, there are more
than 60% of the creditors, both secured and unsecured, that
have principally agreed in terms and  conditions after a
lengthy negotiation.

The slow restructuring process reflects the company's
thorough administration to obtain enough support from the
creditors for Special Resolution in the Bankruptcy
Court when it later files a petition for Reorganization so
that the debt restructuring process will be legally
approved while all creditors are under the same legal
framework.

The filing at the Bankruptcy Court is expected to be done
within September 30, 2000. Although the company's debt
restructuring process is still underway, it insists its
intention to retain the listing status in the SET
while the company still operates its normal business in the
direction that properly fits consumers increasing demand of
housing amidst the low interest rate environment.

Now that housing is one of humans basic needs and demand
for it is on a rise, both the company and the creditors can
be assured that problem of the core business is easing
and financial liquidity is improving.  Finally, above all,
the trend has suggested that the Reorganization is highly
possible.  (The Stock Exchange of Thailand  24-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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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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