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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, August 9, 2000, Vol. 3, No. 154

                                   Headlines


* A U S T R A L I A *

COUNTY DIRECT ENHANCED CASH UNIT TRUST: Assets frozen
COUNTY ENHANCED CASH POOLED SUPERANN.TRUST: Assets frozen
COUNTY ENHANCED CASH TRUST: Assets frozen
COUNTY INDEXED BOND TRUST: Assets frozen
COUNTY LIFESTYLE ENHANCED CASH TRUST: Assets frozen
LIBERTYONE: Mystery bidder fades out of picture
MUSEUM OF CONTEMPORARY ART: Rescue plan hangs in balance
WWW INSTITUTE OF AUSTRALIA: Bytes dust


* C H I N A  &  H O N G  K O N G *

CHINA EDUCATION SCIENCE TECH.TRUST: Gov't to close
CHINESE BOOKS CYBERSTORE: ITVL vows to help creditors
CONSTRUCTIONAL SYSTEMS LTD: Facing winding up petition
JIALING INT'L HOLDINGS LTD: Facing winding up petition
JIALING INVEST.DEVEL.(CHINA): Facing winding up petition


* I N D O N E S I A *

BANK NUSA NASIONAL: S'holders Obligation Pact signed
BANK TAMARA: S'holders Obligation Pact signed
PT PERUSAHAAN DAGANG DAN IND.OME.: Gets payment suspension


* J A P A N *

HAZAMA CORP.: 3 banks considering debt waivers
SOGO CORP: To sell all overseas stores
SOGO CO.: Nagano clearance sale draws crowd
SOGO CORP: Seibu denies takeover plan report


* K O R E A *

HYUNDAI GROUP: Up against the wall if misses deadline
HYUNDAI GROUP: Creditors demand family wealth be used
SHIN DONG BANG: Creditors to select sale manager


* M A L A Y S I A *

MEASUREX CORP.: Ordered to pay $3M judgment to Maybank
PRIMA RAMPAI SDN: Purchased as part of debt settlement


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

COLLEGE ASSURANCE PLAN: Trust fund short by P747M
PHIL.NATIONAL CONSTRUC.CORP.: Attracts bidders
PNB SECURITIES: Broker denies part in BW scam
PRIME BANK: PDIC to auction branch licenses


* T H A I L A N D *

THAI CANE PAPER: Court rejects rehab objection
THAI ELECTRONIC INDUSTRY: Files rehabilitation petition


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

COUNTY DIRECT ENHANCED CASH UNIT TRUST: Assets frozen
COUNTY ENHANCED CASH POOLED SUPERANN.TRUST: Assets frozen
COUNTY ENHANCED CASH TRUST: Assets frozen
COUNTY INDEXED BOND TRUST: Assets frozen
COUNTY LIFESTYLE ENHANCED CASH TRUST: Assets frozen
---------------------------------------------------------
Wholesale and retail investment trusts holding more than
$500 million of investor money were yesterday frozen by
their manager, the National Australia Bank subsidiary,
County Investment Management.

County said it was suspending transactions for five trusts,
including one retail trust with almost 2,000 customers,
over exposure they have to inflation-linked bonds issued in
1997 to finance the Loy Yang A power station. The funds
management group believes the bonds have become temporarily
unsalable, in the face of a pending major ownership shuffle
at Loy Yang A, and says it is now working on plans to re-
inject liquidity into the funds.

County chief executive Mark Birrell said last night he was
confident that the freeze on processing applications and
redemptions could be reversed by the end of this month.
County was an experienced infrastructure investor "and this
is the first time we have experienced experienced complete
market failure", he said.

The funds management group owns $42 million worth of the
Loy Yang Bonds, equal to 12 per cent of the $350 million
raised in the bond issue in late 1997 to help fund the
$4.85 billion purchase of Loy Yang A by a consortium led by
the US company, CMS Generation.

Funds frozen yesterday included County's $368 million
Enhanced Cash Trust, which holds $25.7 million of the Loy
Yang A bonds for wholesale clients and County's $109
million Indexed Bond Trust, which holds $19.5 million worth
of the bonds. Another three funds - County's Enhanced Cash
Pooled Superannuation Trust (which has assets of $19
million), the Lifestyle Enhanced Cash Trust (assets of $49
million) and the County Direct Enhanced Cash Unit trust
(assets of $3 million) have indirect exposure to the bonds
through their investment in the wholesale cash trust, and
have also been frozen.

The Lifestyle Enhanced trust has 1,800 members. Mr Birrell
said there was no credit issue with the bonds, which were
still paying interest when due. But the market for the
bonds had dried up progressively this year as it became
clear that Loy Yang A's largest shareholder, CMS Energy,
was considering selling its 49.6 per cent stake in Loy Yang
A, he said.

CMS is appraising potential buyers for the stake, and is
considered likely to sell the stake towards the end of this
year. The sale could trigger a refinancing of Loy Yang A's
senior debt, which would inevitably spill into the Bond
issue, and this has helped dry up demand for the bonds in
the secondary market.

The fact that CMS and its advisers were fielding potential
offers and assessing them also created concerns that there
could be an "information mismatch" in the market for the
Loy Yang bonds, sources said. In a notice sent to investors
and also posted on County's web site the fund manager said
that redemptions had combined with the lack of liquidity in
the bonds to drive up the percentage of the funds taken up
by the loy Yang bonds "to a level which County believes it
would be imprudent to exceed." (Sydney Morning Herald  08-
Aug-2000)

LIBERTYONE: Mystery bidder fades out of picture
-----------------------------------------------
Internet media company LibertyOne has announced that US-
based CyberSentry Inc has abandoned its takeover offer for
the local dot-com company.

The company said that it had received a copy of an
announcement by CyberSentry which said that the company
could not receive board approval for the takeover move and
would not proceed with the bid.

"The offer required that the LibertyOne Ltd board of
directors approve the offer prior to its distribution to
shareholders," CyberSentry said in the statement received
by LibertyOne.

LibertyOne added that it had not yet received a formal
offer document from CyberSentry.  Today's announcement
follows an announcement by CyberSentry last month, which
valued LibertyOne shares at 30 cents each.  The offer
involved echanging one CyberSentry share for seven
LibertyOne shares and was subject to the US Internet
company completing a two for one stock split. (Sydney
Morning Herald  08-Aug-2000)

MUSEUM OF CONTEMPORARY ART: Rescue plan hangs in balance
--------------------------------------------------------
The University of Sydney last night failed to make a final
decision on the City Council's $59 million rescue plan for
the Museum of Contemporary Art, despite an ultimatum that a
clear-cut decision had to be made or the offer would be
withdrawn.

The Lord Mayor, Councillor Frank Sartor, has been
negotiating with the university, the museum's parent body,
for control of the museum board. A meeting last night of
the university's senate discussed a draft deal between Cr
Sartor and the Vice-Chancellor, Professor Gavin Brown, for
the university to hand over control of the board.

Professor Brown said later that there were some issues to
be sorted out between the parties. However, it is believed
the senate passed a resolution giving Professor Brown the
authority to negotiate a final agreement with Cr Sartor.
Sources said that the terms of the Power bequest to the
university, endowing it money and paintings which led to
the creation of the museum, were very specific and the
university could not act contrary to those terms.

Professor Brown refused to confirm that the unresolved
matters related to the financial details of Cr Sartor's
plan. "So far so good," he said. "There are still some
things to sort out with the Lord Mayor and the MCA. I won't
even say whether it's fine detail or gross detail; there
are just some details to be resolved."

Professor Brown, Cr Sartor and the museum's director, Ms
Elizabeth Ann Macgregor, will meet early this morning for
further talks. On Friday, Cr Sartor said he was seeking an
end to the uncertainty over the MCA's future and wanted a
final decision from the senate.

But last night he appeared to back away from his earlier
comments, saying: "While I am pleased there appears to have
been progress as a result of the university senate's
meeting, it would not be appropriate to comment ahead of
further talks planned tomorrow."

It is understood there was a strong feeling among senate
members that they would not be hurried into making a
decision.  Ms Macgregor declined to comment last night.
(Sydney Morning Herald  08-Aug-2000)

WWW INSTITUTE OF AUSTRALIA: Bytes dust
--------------------------------------
Internet group, World Wide Web Institute of Australia Pty
Ltd, went into voluntary administration in August 2000. Its
United States parent, World Wide Web Insitute.com, is
believed to have refused further funding for the Australian
Web development and hosting operations.

The US group also pulled funding for loss-making operations
in Brazil and Canada.  The Australian group is headed for
liquidation, leaving creditors out of pocket, staff out of
jobs, and customers with little hope of getting their Web
sites. (Australian Financial Review  07-Aug-2000)


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

CHINA EDUCATION SCIENCE TECH.TRUST: Gov't to close
--------------------------------------------------
The People's Bank of China will close China Education
Science Technology Trust and Investment Co Ltd, according
to the Shanghai Daily.

Citing an announcement published by the PBoC, the report
said a team from the Ministry of Education will act as the
liquidator for the investment firm. The central bank is
asking creditors to register the amount owed them between
Aug 14 and Nov 14. The report said the move follows the
closure last week of China Huayang Financial Leasing Co and
China Huakang Trust and Investment Co after the companies
failed to repay their debts.  (AFX News Limited  08-Aug-
2000)

CHINESE BOOKS CYBERSTORE: ITVL vows to help creditors
-----------------------------------------------------
ITVentures (IVTL) has vowed to help its creditors in need
of financial help and has submitted a proposal to its
provisional liquidator to revive its Chinese Books
Cyberstore operation.

The online bookstore went into liquidation last week
following a rejection by 15 of its shareholders to a
HK$27.5 million proposal to restructure the business.
ITVL's chairman, Gabriel Yu, said at a press conference, "I
am fully aware that CBC's voluntary liquidation has caused
its creditors and business partners much inconvenience and
also regret the repercussions this event has generated in
the Internet industry in Hong Kong."

He continued, "I believe I have tried my best to prevent
CBC from going into liquidation. However, ITVL has
exhausted other viable alternatives to resolve the
management deadlock situation which persisted in CBC during
the past few weeks."

Yu added that any of CBCs creditors could see him if they
need financial help as a consequence of CBCs liquidation.
(Newsbytes News Network  07-Aug-2000)

CONSTRUCTIONAL SYSTEMS LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on September 20 on the petition of
Lau Yuen Fan for the winding up of Constructional Systems
Limited. A notice of legal apperance must be filed on or
before September 19.

JIALING INT'L HOLDINGS 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
Nanyang Commercial Bank, Limited for the winding up of
Jialing International Holdings Limited. A notice of legal
apperance must be filed on or before September 13.

JIALING INVEST.DEVEL.(CHINA): 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
Nanyang Commercial Bank, Limited for the winding up of
Jialing Investment Development (China) Limited. A notice of
legal apperance must be filed on or before September 13.


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

BANK NUSA NASIONAL: S'holders Obligation Pact signed
BANK TAMARA: S'holders Obligation Pact signed
-----------------------------------------------------
The shareholders of two Indonesian private banks, Bank
Tamara (JSX:TMBN) and Bank Nusa Nasional, have signed a
Shareholders' Obligation Settlement (PKPS) agreement with
the Indonesian Bank Restructuring Agency (IBRA).

Bank Tamara and BNN, which were taken by the government in
March 1999, owe the government Rp465.1 billion (US$ 58
million) and Rp3.59 trillion respectively to the
government.  (Asia Pulse  07-Aug-2000)

PT PERUSAHAAN DAGANG DAN IND.OME.: Gets payment suspension
----------------------------------------------------------
The Jakarta commercial court said it has granted PT
Perusahaan Dagang Dan Industri Ometraco a 45-day suspension
of debt payments to allow the company to negotiate a debt
restructuring agreement with creditors.

"It is appropriate to allow Ometraco time to negotiate a
debt restructuring program with its creditors as the
company has shown its good faith," presiding judge Putu
Supadmi said.

She said after the 45 day period, the creditors will have
to vote on whether they would like to continue negotiating
with the company for a detailed and final debt
restructuring deal. IBRA filed a bankruptcy suit against
Ometraco with the commercial court in mid-July for the
company's failure to repay matured debts worth 22.7
bln rupiah.  Ometraco's other creditors include Bank
International Indonesia and American Express Bank. (AFX
News Limited  08-Aug-2000)


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

HAZAMA CORP.: 3 banks considering debt waivers
----------------------------------------------
Three main creditor banks of Hazama Corp are expected to
reach as early as this week an agreement on forgiving some
105 bln yen in debt, the Nihon Keizai Shimbun reported.

Under the agreement, Shinsei Bank will forgive around 12
bln yen of the 43 bln yen loan extended to Hazama, it said.
Dai-Ichi Kangyo Bank Ltd and Mitsubishi Trust and Banking
Corp will waive their claims of 55 bln yen and 35 bln
extended to Hazama respectively and they will also jointly
purchase the remaining debt of more than 30 bln yen
of Shinsei Bank's outstanding debt, it said.

The general contractor will continue negotiations with
Nippon Credit Bank Ltd, which will be sold to a consortium
led by Softbank Corp in September, it said. Hazama will
also ask five banks, including DKB and Mitsubishi Trust
and Banking, to buy by fiscal year-end about 8 bln yen in
new shares that it will issue in private placements, the
report said.  The other three banks are Asahi Bank Ltd,
Sanwa Bank Ltd and Sakura Bank Ltd, it said. (AFX News
Limited  08-Aug-2000)

SOGO CORP: To sell all overseas stores
--------------------------------------
Sogo Co Ltd, the major Japanese department store which
collapsed on July 12, has announced that it will pull out
from its overseas businesses, selling its stocks and real
estate to other companies.

Sogo submitted an application with the Tokyo district court
on July 12 to start court-mandated bankruptcy
rehabilitation proceedings.  The Sogo group has been
swamped with combined liabilities of 1.87 trillion yen. It
was the first time a major department store went bankrupt
in Japan.

News agency dpa quoted a Sogo spokesman as saying in Tokyo
yesterday that the company has been in negotiations with a
third party to sell its shopping mall, which the company
bought for about US$230mil in 1990 in the posh Rodeo Drive
district in Los Angeles.  The Sogo official declined to
give details about the negotiations.

However, according to a report in Japan's Jiji Press
yesterday, the department store is in the final talks with
a European real estate firm to sell the 13,000-sq-m
shopping mall in Los Angeles for US$130mil.  The Sogo
official said the Japanese department store will also sell
all stocks of its overseas' stores--totalling 14 in Europe
and Asia--to local firms. Sogo's Asian stores include those
in Hong Kong, Taiwan, Malaysia and Thailand.

Sogo has shut down three retail outlets out of 27 stores
nationwide and laid off a total of some 300 workers at the
outlets. The other 24 stores will remain in operation.
Meanwhile, AFP reported that Seibu Department Stores Ltd
has denied it is planning to take over Sogo in an alliance
that would create Japan's biggest department store chain
(The Star  08-Aug-2000)

SOGO CO.: Nagano clearance sale draws crowd
-------------------------------------------
The Sogo Co. department store in Nagano began a final
clearance sale Monday, with shoppers from Nagano and
neighboring cities lining up outside before the store
opened at 10 a.m.

The store having closed on July 12 and the department store
chain having filed bankruptcy the next day owing massive
debts, the event was tabbed the "Big Liquidation Disposal
Sale." Summer clothes and other merchandise valued at about
500 million yen was offered at discounts of more than 70
percent.

Estimates have store sales reaching 250 million yen by
close of trade Wednesday, the scheduled end of the sale.
Several shops and suppliers that were forced to withdraw
when the store closed also offered goods in the sale.
providing the bustling atmosphere usually associated with

Two other Sogo stores -- Kisarazu Sogo department store in
Chiba, which also went bankrupt, and Tama Sogo department
store in Tokyo, which will be liquidated - will have
similar sales soon.

SOGO CORP: Seibu denies takeover plan report
--------------------------------------------
Seibu Department Stores denied yesterday it was planning to
take over collapsed Sogo in an alliance that would create
Japan's biggest department store chain.

The Nihon Keizai Shimbun reported Saturday the two retail
giants would agree this month to consolidate under the same
holding company in 2002 after working together on
resuscitating Sogo.

"We do not know where this story came from," a Seibu
spokesman said.

The prestigious Seibu chain said it may send senior
directors to help manage Sogo after its collapse although
the details, including the timing, had yet to be finalized.

"There was a news report concerning Sogo and Seibu
Department, and we are considering sending personnel,"
Seibu president Yukio Horiuchi said in a written statement
yesterday.  "But at this point there is nothing beyond
sending personnel."

Sogo likewise denied the report. "We have never said such a
thing and the report itself was based on speculation," a
Sogo spokesman said.

Burdened with debts from heavy expansion, Sogo collapsed
and sought court protection on July 12. The government had
agreed to cancel almost half the 170-year-old Sogo store
chain's 200-billion-yen (US$1.9-billion) debt to Shinsei
Bank but it had to withdraw the scheme under public
pressure.

A Seibu-Sogo tie-up would have created Japan's largest
department store chain with annual revenue of 1.7 trillion
yen (US$16 billion), easily exceeding Takashimaya's 1.1
trillion yen.  The Nihon Keizai Shimbun said the two
retailers would ask for loans and investment by their main
banks, Dai-Ichi Kangyo Bank and Industrial Bank of Japan.
Seibu Department Stores, a core company of the Seibu group,
was founded in 1940 and has 24 stores in Japan. (Business
Day  08-Aug-2000)


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

HYUNDAI GROUP: Up against the wall if misses deadline
-----------------------------------------------------
The government and creditors are expected to stop offering
fresh loans and collect matured loans from Hyundai
Engineering & Construction Co. if it fails to meet the
deadline of August 19-21 to submit a self-relief package.

High-ranking officials of Financial Supervisory Commission,
the bank watchdog body, said that the government intends to
let Hyundai to go bankrupt if the company does not submit a
concrete self-relief plan by mid-August.  They noted FSC is
considering court receivership or workout of Hyundai to
normalize its operation, while excluding the current
management of the company.

Such a firm attitude may not change even with the new
economic team under the cabinet reshuffle announced August
7, the officials said.  If that is the position of the
government, it would be inevitable for Hyundai to go
bankrupt as it has to monthly secure nearly 200 billion
won (US$174 million) through its own non-banking sources.

Meanwhile, officials of Hyundai Group's restructuring team
refused the government demand, saying that they cannot
include the withdrawal of the company's management in the
self-relief package.  (Korean Industry Update  07-Aug-2000)

HYUNDAI GROUP: Creditors demand family wealth be used
-----------------------------------------------------
Creditor banks of South Korea's Hyundai Group have urged
the group's founding family to use their private assets to
help ease Hyundai's liquidity crisis, news reports said
Tuesday.

The Korea Exchange Bank (KEB) and other creditors gave
Hyundai until August 19 to come up with a new self-rescue
package which must contain a pledge to use the private
wealth of the group's founding family, the Dong-A daily
said.  A KEB spokesman said the bank had conveyed
unspecified creditors' demands to Hyundai on Monday but
declined to give details.

A senior KEB official was quoted as saying by Dong-A that
the bank would soon send an "ultimatum" to Hyundai if the
group fails to respond to the demands.  He said the
ultimatum would urge Chung Mong-Hun, successor to the
group's founder Chung Ju-Yung, and other members of the
group's founding family to use personal assets to
recapitalize the Hyundai Engineering and Construction Co.

The construction arm, viewed here as the group's flagship,
has been tottering on the verge of insolvency, posing risks
of bankrupcy to other Hyundai units bound to the company
through debt repayment guarantees.

"The ultimatum would call for large shareholders to take
part in recapitalizing the Hyundai Engineering and
Construction through rights issue," the EKB official was
quoted as saying by the daily.

It means that Chung Mong-Hun, who is the largest share
holder with a 7.82 percent stake, would have to raise funds
by selling his private wealth, including securities. The
creditor banks and the government have threatened to place
the construction company under a court receivership or to
take control and put it under a debt-rescue programme.

Concerns over the uncertainties surrounding the Hyundai
Group reached a new height Monday after a cabinet reshuffle
failed to bring in new figures who may bring a fresh
momentum to the government-led reform drive.  However the
new economic czar, Finance and Economy Minister Jin Nyum,
immediately moved to ease concerns by putting pressure on
Hyundai.

"The Hyundai Group must be sincere in implementing the
demands by creditor banks," he told journalists, adding
that the change of the economic team in the cabinet would
not lead to soft-pedaling on the Hyundai issue. (Agence
France-Presse  08-Aug-2000)

SHIN DONG BANG: Creditors to select sale manager
------------------------------------------------
Creditor financial institutions of Shin Dong Bang are this
week expected to announce the administrator who will
oversee Shin Dong Bang's sell off.

Three companies have applied to conduct the sale process -
KPMG, Chase Manhattan and PWC. They will present their
proposals in a joint briefing session today. The selected
company will conduct a complete audit on the company before
drawing up a plan to sell it off through auction, according
to Shin Dong Bang's main creditor, Hanvit Bank. (Korea
Herald  08-Aug-2000)


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

MEASUREX CORP.: Ordered to pay $3M judgment to Maybank
------------------------------------------------------
Malayan Banking Bhd (Maybank) has obtained a judgment
against Measurex Corp Bhd in the High Court of Singapore on
July 21 2000, in respect of a corporate guarantee entered
into in 1997.

Accordingly, Measurex has to pay Maybank the aggregate sums
of US$3 million or RM11.4 million and S$1.89 million (S$1 =
RM2.22). Interest on the sums are at 3.5 per cent above the
Maybank's prevailing US dollar cost of funds and 5 per cent
above Maybank's Singapore dollar prime rate respectively.

The judgment is in respect of the company's corporate
guarantee executed in favour of Maybank on behalf of
Measurex's subsidiary borrower Measurex Engineering Pte
Ltd.  In a statement to the Kuala Lumpur Stock Exchange,
Measurex pointed out that Maybank based its claim on a
corporate guarantee which has terms that provided for all
rights obligations and liabilities arising thereunder to be
construed, determined and enforced in accordance with
the laws of Malaysia.

Furthermore, the courts of Malaysia is to have jurisdiction
over all disputes arising under the guarantee. Since the
judgment has been entered in the Singapore courts against
it, Measurex is obtaining legal advice on the necessary
action to be taken which would set aside the default
judgement and or to stay the execution of the default
judgment.

Measurex shares have dipped from RM3.88 on July 20, a day
prior to judgement, to a low of RM3.52 on August 2. The
shares were down 10 sen to end the week on August 4 at
RM3.54.

The Measurex group's activities include manufacturing of
moulds, jigs and fixtures, precision machines and hard disk
drive components.  For the financial year ended December 31
1999, the group posted a pre-tax loss of RM9.55 million on
the back of RM156.27 million in turnover.

Loss after tax and minority interest stands at RM9.26
million while loss per shares amounts to 23.2 sen. For the
first quarter ended March 31 2000, the group posted a pre-
tax and after tax loss of RM3.48 million and RM2.77 million
respectively.  (Business Times  07-Aug-2000)

PRIMA RAMPAI SDN: Purchased as part of debt settlement
------------------------------------------------------
RB Resorts Sdn Bhd, a wholly-owned subsidiary of Road
Builder (M) Holdings Bhd, has acquired a property company,
Prima Rampai Sdn Bhd, for RM2 cash. RB Resorts, however,
would pay the vendor, Prestige Future Sdn Bhd, RM17mil as
full and final settlement of the RM27mil debt due from
Prima Rampai to Prestige.

In an announcement to the KLSE, Road Builder said that RB
Resorts had on Aug 4, entered into a conditional sale and
purchase agreement with Prestige to acquire the 100% equity
interest comprising two RM1 ordinary shares in Prima Rampai
for RM2. Prima Rampai holds 60,000 shares representing 30%
of the total paid-up share capital of Condoheights
Development Sdn Bhd.

The balance 70% is held by Road Builder's associate
company, Econstates Bhd.  Road Builder said its acquisition
give it influence over the development of 1,546 acres of
land held in Condoheights which is located next to Seremban
Two. The transaction is subject to the approval of the
Foreign Investment Committee. (The Star  08-Aug-2000)


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

COLLEGE ASSURANCE PLAN: Trust fund short by P747M
-------------------------------------------------
The College Assurance Plan Philippines Inc., the country's
biggest pre-need plan company, has a trust fund deficiency
of P747 million, financial statements of the company
showed.

The deficiency violates the rules of the Securities and
Exchange Commission wherein the net asset value of trust
funds of pre-need plan firms should not be less than the
actuarial reserve liability (ARL)-the projected amount of
benefits to be paid to plan holders-as determined by
an actuary accredited by the SEC.

CAP's audited financial statements showed that the firm's
trust fund assets at end-1999 amounted to P6.486 billion
while the ARL at the period was pegged at P8.674 billion,
or a trust fund deficiency of P2.187 billion. The company
said in its notes to the financial statements that P1.44
billion "was contributed" to the trust fund last January,
thus reducing the P2.187-billion deficiency.

It added that the balance of the end-1999 deficiency, P747
million, would be funded in the latter part of this
year. The financial statements showed that as of end-1999,
CAP had assets of P21.469 billion and profits of P289.36
million.

The notes also showed that the company has transactions
with related parties consisting of "charges for various
expenses for affiliates and advances, which are non-
interest bearing."

An industry official said that the transactions could
include assistance or advances to CAP's sister companies
that were not considered as loans or that CAP was sharing
in the losses of sister companies and booking these as
advances.  In a confidential report last February, a
foreign consultant of the Securities and Exchange
Commission has questioned "conflict of interest"
transactions of pre-need companies such as that of the CAP
Group with the Fil-Estate group of companies. Both are
controlled by the Sobrepena family.

Accelerating Growth through Investment and Liberalization
with Equity (Agile) cited the investments of the CAP Group
in Fil-Estate Land Inc. and Fil-Estate Corp., wherein the
president and chief executive officer of the CAP Group as
of 1998 sat as a member of the board of directors. The
study also cited the reported investment of CAP Group of P2
billion in Fil-Estate Management Inc. in 1998.

It also noted that CAP and CAP Pension and two other top
pre-need firms placed their trust funds with affiliate
banks.

"The affiliations of the parties raise questions about the
independence of the trustees, the involvement of the CAP
Group management in these investment decisions and whether
these transactions constitute 'unsound practices' within
the BSP Rules, in the face of the potential conflicts of
interest issues raised by the investments," Agile
said.

As of mid-1999, CAP and CAP Pension Trust Funds had direct
investments in FELI and FECI stock equivalent to 1.6
percent and 3.16 percent stakes, respectively. The share
prices of FELI and FEC stocks have plunged following the
Asian financial crisis.

Prior to 1997, FELI was one of the most aggressive property
developers in the country with investments in residential
subdivisions, high-rise residential and office
condominiums, resorts and golf club development. FECI, on
the other hand, has investments in infrastructure, owning
23 percent of the equity of the Edsa MRT project; and
leisure, with a 35-percent stake in Camp John Hay
Development Co.

Agile noted that as a result of the slump in the property
market, FELI was forced to seek a debt restructuring with
its creditor banks in April 1999 while FEC encountered
delays in the schedule for the redevelopment of Camp John
Hay.

"The potential for affiliated transactions between market
participants in the pre-need industry is enormous. Such
transactions may affect the financial condition of the pre-
need company if such a transaction was entered into not
because of its good investment potential but rather
because of the relations between the parties," Agile said.
(Philippine Daily Inquirer  07-Aug-2000)

PHIL.NATIONAL CONSTRUC.CORP.: Attracts bidders
----------------------------------------------
The Lopez family and a company owned by banker George Go
are among those interested in buying the government's 89-
percent stake in debt-ridden Philippine National
Construction Corp.

"The bidding is attracting big groups like the Lopezes and
Crown Equities," according to Finance Undersecretary Joel
Ba¤ares.

Crown Equities is controlled by Go, chair of Equitable-
PCIBank.  Ba¤ares said there were no more hitches to the
sale of PNCC after the Securities and Exchange Commission
approved the conversion of the loan exposure of government
financial institutions into equity in PNCC (formerly
Construction Development Corp. of the Philippines.)

The SEC approval, Ba¤ares said, has given to the government
control over PNCC. The sale of nearly 90 percent of PNCC
would give the state coffers about P6.5 billion.  The
results of a full audit review on the assets and
liabilities of PNCC are expected to be out this week to
pave the way for the bidding by Sept. 16 this year.

Chief executive trustee Renato Valdecantos of the Asset
Privatization Trust said the financial review conducted by
the Development Bank of the Philippines and law firm
Punongbayan Araullo and Associates would be used as basis
in determining the value of the government's PNCC shares.

Valdecantos said the financial review, which covered PNCC's
outstanding shares as well its real estate holdings, would
give a clear picture of the financial health of PNCC whose
books have become a quagmire after the government took over
the company from its founder, Rodolfo Cuenca, in 1983.

Although burdened by a mountain of debt, Valdecantos said
PNCC remained an enticing prospect because of the huge cash
flow from toll operations (its franchise for the North and
South Luzon Expressways will expire in 2007).

"The company only needs to restructure its debts to curb
its expenses so it could be nurtured back to
profitability," Valdecantos said.

The PNCC shares to be sold comprise the combined holdings
of the government held by the APT, the Government Service
and Insurance System, the Social Security System, and the
Presidential Commission on Good Government. Cuenca has
filed a case with the Securities and Exchange Commission to
block the government's sale of PNCC shares.

Cuenca claimed that the government did not consummate the
conversion of PNCC's P4-billion debt into equity because
the Marcos directive effecting the deal was not
implemented.  The SEC previously lifted the preliminary
injunction on the PNCC shares after the GFIs showed new
evidence that they completed the debt swap 17 years ago.
But Cuenca has vowed to stop the PNCC bidding in any court
until the ownership row has been settled.

Valdecantos said there was strong interest in PNCC. He said
the prospective bidders could join forces with foreign
partners who can take up to 40-percent equity. (Philippine
Daily Inquirer  08-Aug-2000)

PNB SECURITIES: Broker denies part in BW scam
---------------------------------------------
PNB Securities Inc., one of the brokerage houses suspected
to be involved in last year's manipulation of BW Resources
shares, has denied any wrongdoing and has asked the
Department of Justice to drop the charges against it.

PNB Securities president Augusto Cosio Jr. said they didn't
have anything to do with presidential friend Dante Tan,
majority stockholder of the gaming firm, in his alleged
anomalous transactions that created artificial trading
activities in the stock market.

"I further deny the accusation that PNBSI's done through
transactions with other brokers became a manipulative
device in creating a false scenario of actual and
legitimate trading of BW shares," he stated in his five-
page counter-affidavit submitted to the DOJ.

He also noted that contrary to the Securities and Exchange
Commission's (SEC) claims, there was not an iota of "clear
and convincing evidence" that they conspired with Tan or
the 39 other individuals, eight brokers and two firms who
were charged with violations of the Revised Securities Act.
(Philippine Star  08-Aug-2000)

PRIME BANK: PDIC to auction branch licenses
-------------------------------------------
The Philippine Deposit Insurance Corp. (PDIC) is set to
auction the branch licenses of closed Prime Savings Bank
(Prime Bank) on August 25.

Prime Bank was placed under PDIC receivership last January
7 after it declared a bank holiday in June 1999. Prior to
its declaration of a bank holiday, the thrift bank had
difficulty beefing up its capital to meet the Bangko
Sentral's (central bank) increased equity requirements.

PDIC president Norberto C. Nazareno told BusinessWorld in
an interview the PDIC has already finalized the terms and
conditions for the auction of Prime Bank's 62 branch
licenses. The auction will take place at the PDIC building
in Makati, Metro Manila.

"We have already finalized the terms and conditions for the
bidding or the disposition of the 62 branch licenses and
there were already 45 banks that have expressed their
interest," Mr. Nazareno said.

The PDIC president hopes that a successful auction will
take place.  "They (winning bidders) are given incentives
such that they can relocate in the general area (of the
branch that was purchased). That means if you are able to
get one located in Metro Manila you can relocate anywhere
in Metro Manila, same goes for Metro Cebu and Metro Davao,"
he said.  "If you get one in Luzon you can relocate in
Luzon, so there is flexibility."

Aside from this, Mr. Nazareno also said the Bangko Sentral
has already agreed to allow the winning bidders to
ammortize the cost for a period of ten years. He added
Prime Savings' depositors have also agreed to a three-year
pay-out period for their uninsured deposits that remain
trapped in the bank.

"It's very attractive specially since (the central bank)
said that for the next three years wala ka nang makukuha
(you cannot get anything)," he added.

Mr. Nazareno said PDIC has set a minimum bidding price of
PhP15 million ($.335) for branches in Metro Manila, Davao
and Cebu while PhP10 million is set for branches in the
provinces.  Of the 62 branches that will be auctioned, 21
are located in Metro Manila, 27 in Luzon, two in Cebu, four
in Visayas, three in Davao and five in Mindanao.

The PDIC started servicing Prime Bank's insured deposits on
March 29, about nine months after it declared a holiday and
two months after it was placed under receivership. The
state deposit insurer earlier blamed the delay on the
massive splitting of accounts during the bank's seven-month
holiday. PDIC said the bank has an estimated total deposit
of PhP3.5 billion, of which only PhP1.4 billion was
insured. (Business World  08-Aug-2000)


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

THAI CANE PAPER: Court rejects rehab objection
----------------------------------------------
The Central Bankruptcy Court yesterday refused to accept
objections lodged by Kitti Keeratimongkollert against the
business rehabilitation petition of Thai Cane Paper Plc.
(Asia Pulse  08-Aug-2000)

THAI ELECTRONIC INDUSTRY: Files rehabilitation petition
-------------------------------------------------------
Thai Electronic Industry Public Company Limited has
informed the Stock Exchange of Thailand that it submitted a
petition for the rehabilitation on 30 June 2000 to the
Central Bankruptcy Court.

The court accepting the petition appointed the trial date
on 31 July 2000.  On the date, two creditors, Siam City
Bank  Public Company Limited and Bangkok Bank Public
Company Limited protested and the court set the date to
hear the withess of the protesters on 10 August 2000 at
1300 hours. The court also ordered the two creditors to
submit the protests in writing to the company before the
hearing date. (Stock Exchange of Thailand  08-Aug-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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