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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

             Monday, August 21, 2000, Vol. 3, No. 162

                                    Headlines


* A U S T R A L I A *

PMP COMMUNICATIONS : Writedowns cause annual loss
TELSTRA CORP: Facing massive damages claim


* C H I N A  &  H O N G  K O N G *

G-PROP HOLDINGS: Posts third consecutive annual loss
HONGKONG.COM: Sacks 10, 37 more on the bubble
SINCERE CO: Under fire over exec compensation
SUCKLE KNITTING FACTORY LTD: Facing winding up petition
WAH SING JEWELLERY LTD: Facing winding up petition
W.HO CIVIL ENG.&CONST.CO: Facing winding up petition
YIN SANG TRADING CO.LTD: Facing winding up petition


* J A P A N *

BEST DENKI CO.: Forming alliance with Nagasakiya Co.
BRIDGESTONE CORP: Extends reimbursement, recall program
BRIDGESTONE CORP: Union threatens strike as talks stall
SOGO CO: In talks with creditors to reduce debt


* K O R E A *

DAEWOO MOTOR: Ford finishes tire kicking, ready to deal
HYUNDAI ENG'G & CONST: Sales up, but 1H loss
HYUNDAI SECURITIES: Defiant chief facing dismissal
KYONGNAM BANK: To sell securities against debt


* M A L A Y S I A *

IDRIS HYDRAULIC: To undertake massive revamp
IDRIS HYDRAULIC: Shares tumble over overhaul plan
LION GROUP: Majority of creditors agree on rehab scheme


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

CAPITOL WIRELESS INC.: Insolvency rules slow petitions
CIPI LEASING AND FINANCE: Insolvency rules slow petitions
CORP.INVESTS.PHILS.INC.: Insolvency rules slow petitions
DMCI HOLDINGS INC.: Unveils major restructuring plans
NATIONAL DEVELOPMENT CORP.: Likely to post P400M deficit
RURAL BANK of SAN MIGUEL: DOJ files charges vs 2 execs


* S I N G A P O R E *

ADMIRALTY LEISURE: Court allows creditor repossession
NATSTEEL ELECTRONICS: Temasek to pump S$200mil into it
SOGO (Singapore): Judicial managers confirmed


* T H A I L A N D *

CAPETRONIC INT'L: Records Bt623 M Q2 loss
HERMARAJ LAND AND DEV.: Records Bt382.3M Q2 loss
MK REAL ESTATE DEVELOP.: Convertible debentures cure debt


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

PMP COMMUNICATIONS : Writedowns cause annual loss
-------------------------------------------------
Printing and magazine group PMP Communications lost $3.44
million in the year to June 30 as hefty writedowns slashed
the company's earnings per share and forced it to delve
into retained earnings to maintain its dividend payment.

PMP yesterday revealed a net profit before abnormal items
of $59.1 million, a 3.4 per cent slide on the $61.2 million
achieved last year but above market expectations. However,
PMP booked $62.5 million in abnormal losses, slicing its
earnings per share from 22.6› to a loss per unit of 1.4›.

While PMP flagged the $26.4 million writedown stemming from
the sale earlier this month of compact disc manufacturing
group Pacific Mirror Image, the company unexpectedly
knocked $17.4 million from the masthead value of its German
magazine, Hit Stars. That move has some analysts worried
about the potential for further writedowns when the company
next year undertakes its bi-annual review of masthead
values.

PMP presently boasts intangible assets totalling $747
million, with the masthead values believed to be worth more
than $500 million.  PMP's chief executive, Mr Bob Muscat,
rejected suggestions further masthead writedowns were
likely, maintaining the company believed it could grow the
publishing assets.

However, the magazine division's earnings before interest
and tax fell from $33.2 million to $27.6 million in a
performance Mr Muscat said was "pretty disappointing."
While PMP's media production businesses - primarily Show-
Ads - traded strongly, PMP's decision to maintain its final
dividend at a fully franked 10› per share despite the
overall loss meant its total dividend payout of $51.7
million had to be funded by reducing retained profits from
$90.8 million to $35.7 million.

"The result we're presenting today is pretty much in line
with the strategy we set out," Mr Muscat said. "We have a
number of strategies in place to improve that [the
magazine] business. We accept there has been some pressure
on circulations but I think we're in a very good position
going forward." He said the company was "going to have a
pretty vigorous review of publishing going forward."

PMP's core printing operations increased revenues by 4.7
per cent to $875.5 million, comprising 59 per cent of the
company's total sales of $1.48 billion.  That division has
just undergone a major restructuring under PMP's Project
PEG program, which will result in savings of $18.1 million.
(Australian Financial Review  18-Aug-2000)

TELSTRA CORP: Facing massive damages claim
------------------------------------------
Telstra Corp has lost its battle to control pay television
access to its $3.5 billion national cable network and faces
a massive damages claim after a legal judgment on Friday
cracked open the country's biggest pay-TV group, Foxtel.

The Full Bench of the Federal Court dismissed appeals by
Telstra and Foxtel against a decision in March which
required Telstra to distribute the C7 sports channel of Mr
Kerry Stokes' Seven Network. It is expected the judgment
will precipitate a shake-up in the pay-TV industry as
existing operators attempt to gain distribution on rival
platforms, and outside content providers seek carriage on
Foxtel, regional pay-TV group Austar United Communications
and Cable & Wireless Optus' Optus Television.

Foxtel's partners - 50 per cent owner Telstra and 25 per
cent investors Mr Rupert Murdoch's News Corp and Mr Kerry
Packer's Publishing and Broadcasting - had been waiting for
the ruling before talks on other Foxtel services such as
interactivity. Optus has been seeking partners for its $3
billion cable network after a proposed deal with Mr Packer
and Microsoft's ninemsn collapsed three months ago.

While Optus said the court ruling had no bearing on those
attempts, one of the reasons ninemsn executives cited for
ending talks was that the Optus network could soon be
opened generally.  Seven Network on Friday demanded that
Foxtel immediately broadcast C7 ahead of next month's
Australian Football League grand final and is expected to
seek damages totalling hundreds of millions of dollars
after being refused carriage for more than a year. Telstra
and Foxtel must also pay Seven's substantial legal costs.

"Now that two courts have upheld Seven's right to obtain
access, it is hoped that Telstra and Foxtel will take a co-
operative approach," said Mr Stokes, the executive chairman
of Seven.  "Though Telstra and Foxtel could seek leave to
appeal to the High Court, it would simply involve further
unnecessary expenditure by Telstra and be contrary to the
public interest, which must surely be to provide the public
with a much wider choice of programming."

Friday's rulings found that Foxtel does not have exclusive
access to the Telstra cable network for pay-TV purposes and
defined the company as a carriage service provider. That
means Foxtel must not only offer external content providers
access to the Telstra network, but also its set-top boxes.
Foxtel maintains that while C7 and other channels can use
the Telstra network, it is under no obligation to carry
those services as part of its channel packages.

The chief executive of Foxtel, Mr Jim Blomfield, said the
rulings "do not give third parties direct access to our
subscribers, sales avenues, the Foxtel brand, or
expertise."

The company is considering whether to appeal to the High
Court.  However, while the door is now open for external
parties, such as Mr Mike Boulos' Television & Radio
Services Australia, to apply for distribution on the Foxtel
platform, industry watchers do not expect new channels to
appear quickly. (Australian Financial Review  19-Aug-2000)


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

G-PROP HOLDINGS: Posts third consecutive annual loss
----------------------------------------------------
Property investor G-Prop Holdings posted a loss of HK$230.5
million for the year to March 31, the third consecutive
full-year loss, though narrower this time, from HK$433.2
million last year and HK$1.2 billion in 1998.

Turnover was HK$33.8 million, down 18 per cent from HK$41.3
million previously.  The loss was mainly due to several
exceptional items, chief executive Terry Tam said.

Mr Tam said among these was the loss from the disposal of a
50 per cent stake in subsidiary Legend Power - a firm that
sells a patented energy-saving machine - to Cheung Kong
Infrastructure (CKI), a subsidiary of Li Ka-shing's Cheung
Kong Holdings.  The loss from the disposal was more than
HK$100 million, Mr Tam said.

However, he said the deal could still be justified because
CKI's partnership could introduce more business to Legend
Power.  At present, G-Prop holds a 37.5 per cent stake in
the subsidiary.  Mr Tam said the provision for the value
diminution of the company's property portfolio was another
cause for the loss.

The company's property portfolio now amounts to about
HK$200 million, down from more than HK$600 million two
years ago.  Losses per share were 63 HK cents. No dividend
was declared for the year.  The company has been hit hard
since the downturn of the property market in 1997.

It has debts of HK$194 million and about HK$30 million cash
in hand, Mr Tam said.  He expects the diversification of
business to help the company turn around its recent
persistent losses.  G-Prop has acquired a 5 per cent stake
in CAA Satellite TV, a major shareholder of satellite TV
channel Macau Satellite Asia.

The channel was scheduled to be officially launched in
December.  Through partnerships with the mainland's 2,800
cable TV operators it would provide programmes in the
mainland, Mr Tam said.  A subsidiary of G-Prop had been
appointed as the sole advertising agent of Macau Satellite
for 10 years, he said.  He declined to predict when the two
new businesses would generate profits for the company.
(South China Morning Post  19-Aug-2000)

HONGKONG.COM: Sacks 10, 37 more on the bubble
---------------------------------------------
Hongkong.com has sacked 10 staff, with 37 other employees
waiting to be transferred to parent Chinadotcom, in the
latest restructuring move by dotcom firms amid difficult
market conditions.

A Hongkong.com spokesman yesterday said although the
portal-operator was cash-rich after raising HK$1.31 billion
via a Growth Enterprise Market listing in March, it needs
to streamline operations to regain investor confidence.
"We need to reach profitability much quicker," he said.
"We want to become profitable on the operating level
sooner."

He said the firm was hoping to turn profitable "some time
next year", compared to the second half of 2002 as forecast
earlier by some analysts.  Hongkong.com provides a broad
range of Chinese-language Internet content, distribution
channels and cross-promotional services, and e-commerce.

SG Securities analyst Jonathan Iu said: "Their business
model is very fragile. No matter how much cash they have,
they have to do things to improve efficiencies otherwise
they will run out of cash eventually."

He said Hongkong.com, like peer Tom.com and other content
portals, relied heavily on advertising income which was
unable to sustain fast-growing expenses.  Hongkong.com is
hoping to generate monthly savings of between HK$1 million
and HK$2 million after the manpower restructuring. The
company was losing about HK$5 million monthly in the last
quarter.

It reported an operating loss of HK$14.43 million in the
quarter to June 30. Due to interest income of HK$20.12
million mainly on funds raised from its listing, the
company booked a net profit of HK$2.26 million.  The
spokesman said that the staff restructuring would be across
the board, affecting the content production, marketing,
business development and information technology-related
departments.

The announcement followed the sudden collapse earlier this
month of The Chinese Books Cyberstore - Hong Kong's biggest
Internet bookseller - and the axing of 473 employees by
various Internet-related firms in the past two months.
On Monday, mainland portal operator Renren Media cut 102
staff, over a third of its workforce. (South China Morning
Post  19-Aug-2000)

SINCERE CO: Under fire over exec compensation
---------------------------------------------
Questions have been raised over the decision of department-
store operator Sincere Co to pay its three executive
directors a combined HK$22.15 million in the loss-making
year to February 29.

Market watchers say the payments, which included salaries,
allowances and bonuses, came close to the HK$26.47 million
loss the company recorded in the year.  They said it
reflected that directors' salaries were immune to the
company's cost-control measures.

According to the latest annual report, the payments were
increased 5.01 per cent from HK$21.09 million paid a year
earlier, while remunerations for the staff as a whole
decreased 6.08 per cent to HK$129.27 million from HK$137.65
million the previous year.

Managing director Philip Ma King-huen, who also is an
executive director, defended the payments, saying people
should look at both sides of the story. "In the previous
year, the payments had [been] substantially slashed," Mr Ma
said.

The previous year, payments to executive directors were cut
45.53 per cent as the company was hit by the financial
crisis. It made a loss of HK$168 million in the year.
Compared with those cuts, this year's growth in payouts
could only be regarded as moderate, Mr Ma said.

Mr Ma said the level of such payments was a board decision.
The Ma family, including Mr Ma, chairman Walter Ma King-
wah, executive director John Ma and non-executive director
Ma King-wing, account for four of the board's six members.
The four are the offspring of the store's founder Ma Ying-
piu, who launched the company in 1900.

The company had a similar payments row in 1993 when it
announced payments to directors totalling HK$114.75
million, 2.5 times the net profit before extraordinaries
that year.  Under severe pressure, directors repaid part of
the amount, leaving the payouts at about HK$48 million.

Yesterday, Mr Ma said the retailer plans to open more
smaller-sized speciality shops rather than traditional big
stores.  "Unlike traditional department stores, speciality
shops sell fewer types of goods than those full-line
stores," he said.

A speciality shop was less than 250,000 square feet in
size, compared to a big store's 400,000 to 600,000 square
feet.  Rental burdens would be smaller than those of big
stores, Mr Ma said.  The company closed its unprofitable
Kowloon City store in West Kowloon in June.

At present, Sincere has two big stores and three speciality
shops in Hong Kong. Mr Ma said two more speciality shops
were expected to be launched in the coming year.  He said a
profit of HK$38 million from the company's April disposal
of a 61 per cent stake in a property project in London
would be booked in the financial year to next February.

The project, which includes the hotel, London Marriott, is
expected to be completed early next year.  Sincere holds a
30 per cent stake. (South China Morning Post  19-Aug-2000)

SUCKLE KNITTING FACTORY LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on September 27 on the petition of
Sin Hua Bank Limited for the winding up of Suckle Knitting
Factory Limited. A notice of legal appearance must be filed
on or before September 26.

WAH SING JEWELLERY LTD: Facing winding up petition
--------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on October 11 on the petition of
Desco (Hong Kong) Limited for the winding up of Wah Sing
Jewellery Limited. A notice of legal appearance must be
filed on or before October 10.

W.HO CIVIL ENG.&CONST.CO: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on October 4 on the petition of Ng
Hang Kwong Perran for the winding up of W.Ho Civil
Engineering & Construction Company Limited. A notice of
legal appearance must be filed on or before October 3.

YIN SANG TRADING CO.LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on October 4 on the petition of
Leung Hon Keung for the winding up of Yin Sang Trading
Company Limited. A notice of legal appearance must be filed
on or before October 3.


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

BEST DENKI CO.: Forming alliance with Nagasakiya Co.
----------------------------------------------------
Consumer electronics retailer Best Denki Co. has reached a
business tie-up agreement with bankrupt supermarket chain
operator Nagasakiya Co., according to sources close
to negotiations.

The companies will announce the accord early next week.
Under court protection from creditors as it rehabilitates,
Tokyo-based Nagasakiya decided to ally with Best Denki as
part of its plan to improve operations by inviting large
tenants into its supermarkets.

The alliance follows the plan of Fukuoka-based Best Denki
to expand operations in the Kanto region with Tokyo at the
center. Although it operates a nationwide network of about
500 mass discount electronics shops, it only has 31 outlets
in the Kanto region.  Best Denki preliminarily is
considering opening outlets in more than 10 supermarkets
operated by Nagasakiya in the region and adding more in the
future, the sources said.

Nagasakiya filed for court protection under the Corporate
Rehabilitation Law last February. The company has 97
supermarkets of which it plans to close 14 in line with a
rehabilitation plan supported by U.S. investment firm
Cerberus Group.

BRIDGESTONE CORP: Extends reimbursement, recall program
-------------------------------------------------------
Firestone Inc., a U.S. unit of Bridgestone Corp. of Japan,
has announced that it will continue to repay customers who
replace recalled tires at stores other than its authorized
retailers.  Earlier it said its voluntary tire recall
reimbursement program would expire Wednesday this week, but
it has now been extended indefinitely, the company said.

BRIDGESTONE CORP: Union threatens strike as talks stall
-------------------------------------------------------
The union representing 8,000 Bridgestone Corp. workers said
it may terminate a contract covering nine U.S. plants,
setting the stage for a strike as the tiremaker struggles
to replace 6.5 million recalled tires.

The United Steelworkers of America said it was giving
Bridgestone/Firestone Inc., the Tokyo-based company's U.S.
unit, two weeks notice that it's ending a temporary labor
agreement in place since April 23. Negotiations will
continue during the period, the union said.

"If an agreement is not reached at this time, a strike at
every location is probable," said John Sellers, chairman of
the Pittsburgh-based union's bargaining council.

Bridgestone has said the North American recall won't be
completed until the spring, in part because it can't make
the replacement tires fast enough. Consumer groups have
been critical of Bridgestone's handling of the recall,
calling for the company to speed up the process and expand
it to include other tires. (Bloomberg  18-Aug-2000)

SOGO CO: In talks with creditors to reduce debt
-----------------------------------------------
Financially troubled department store operator Sogo Co.,
under rehabilitation after filing for court protection from
creditors in July, is negotiating with parties in an
attempt to have the 1.7 trillion yen it owes reduced to
about 700 billion yen.

The talks include Seibu Department Stores Ltd., and the
possibility of joint purchasing of merchandise and
materials. Sogo still needs to slash debts if it is to turn
itself around quickly.  Protected by a law that enables
firms facing imminent collapse to jump-start their
recovery, Sogo Group plans to submit a rehabilitation plan.

The plan, which reportedly includes a scheme to drastically
reduce its debts, must be submitted by Oct. 25 to the Tokyo
District Court.  If it gets approval at a meeting of its
creditors, Sogo will implement the plan.  Sogo also intends
to narrow the list of companies from whom it will seek
financial support, which includes Cerberus Group, a U.S.
investment fund.

When the Sogo group filed for court protection in July, it
owed 1.87 trillion yen, which included 170 billion yen in
unpaid bills for delivered merchandise and rent owed by
tenants. Sogo has petitioned to have its outstanding debts
of 1.7 trillion yen reduced drastically. Under the
Corporate Rehabilitation Law, 80 to 90 percent of a debt is
usually waived, with creditors receiving but 10-20 percent
of the money they are owed.

The new law aims at a swift rehabilitation of financially
troubled firms. Therfore, Sogo plans to limit its request
for debt forgiveness to 60 percent so that it can gain
approval from creditors and make a swift start on the road
to recovery.  Though that will still leave a debt of some
700 billion yen, it expects that an alliance with Seibu
will enable it to get on a recovery track.


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

DAEWOO MOTOR: Ford finishes tire kicking, ready to deal
-------------------------------------------------------
The world's number 2 automaker, Ford Motor Co., reports
completing its due diligence assessment of Daewoo Motor Co.
and has begun final negotiations with creditors to acquire
the Korean automaker.

The deadline for Ford's completion of due diligence process
was set originally for Aug. 19. Ford won the right to
negotiate exclusively for the purchase of Daewoo Motor in a
June auction, in which it beat rival offers made by General
Motors Corp. and DaimlerChrysler AG.

The Daewoo Restructuring Committee, which represents
Daewoo's creditors in the talks, hopes to complete talks
with Ford in September, according to committee spokesman
Chang Sae Chan. A key to their discussions will be how much
Ford will be willing to pay for Daewoo Motor after it
initially offered 7.7 trillion won ($6.9 billion) for
Daewoo Motor's assets.

Yesterday, Daewoo Group creditors denied a report that Ford
Motor Co. would reduce its final offer for Daewoo Motor by
as much as 1.5 trillion won to 6.2 trillion won because it
uncovered bad assets during an appraisal of the automaker's
assets.

In a separate documents, Ford reportedly will merge Daewoo
Motor and Daewoo Motor Sales Corp. while running Ssangyong
Motor Co. and Daewoo Capital Co. as independent companies.
The report appears in the Korea Economic Daily newspaper,
citing an unidentified committee official. The report says
Ford also will buy Daewoo's auto transmission and metal
plants.

HYUNDAI ENG'G & CONST: Sales up, but 1H loss
--------------------------------------------
Hyundai Engineering and Construction (HEC) said yesterday
its first-half sales totaled 3.89 trillion won, up 42.8
percent from 2.72 trillion won during the same period last
year. But while the company's operating profit reached
358.2 billion won, up 34.5 percent -- it was lowered to
167.2 billion won after subtracting 191 billion won in loss
provisioning against uncollected receivables from Iraq.

Additionally, HEC suffered an extraordinary loss of 108.8
billion won from discounted sales of its holding of
securities to meet its declared self-help package. As a
result, it incurred a net loss of 177.9 billion won during
the first half.  (Korea Herald  18-Aug-2000)

HYUNDAI SECURITIES: Defiant chief facing dismissal
--------------------------------------------------
Government reformers are turning up the pressure for the
dismissal of Hyundai Securities Chairman Lee Ik-chi, the
most controversial Hyundai executive blamed for the group's
internal dispute and liquidity crisis.

The Financial Supervisory Commission said yesterday that it
will decide on the severity of punishment against Lee Aug.
25. He is charged in connection with his role in illicit
foreign capital deals by Hyundai Electronics Ind. and
Hyundai Heavy Ind. in 1998.

Considering Lee's apparent violations of the foreign
exchange transaction and corporate audit laws, the FSC is
expected to instruct Hyundai Securities to dismiss him and
report the case to the prosecution, commission officials
said.

"Heavy disciplinary measures will be inevitable for Lee, as
his criminal charges were confirmed by the FSC's probes,"
an FSC official said. "As Lee was already sentenced to
three-month suspension from office in April 1999 on charges
of manipulating Hyundai Electronics share prices, the
government will recommend his disposition," he said.

The financial market watchdog agency holds jurisdiction
over the punishment of local financial institution
managers.  Lee, one of the most trusted aides to Hyundai
founder Chung Ju-yung and his favored son, Mong-hun, is
accused of offering an illegal memorandum on loss coverage
to Hyundai Heavy in return for the provision of payment
guarantees to Hyundai Electronics' foreign debts.

Government officials and creditors have also denounced him
for masterminding a sibling conflict between Mong-hun and
his elder brother Mong-koo, the chairman of Hyundai Motor.
Despite the intensifying pressure, Lee has stubbornly
refused to step down. Following his public announcement
that he would not resign last week, Lee defied the FSC's
instruction to appear at the commission building for
questioning.

The embarrassed FSC has reportedly sent its investigators
to Lee's office for the questioning, raising speculation
that the watchdog agency was easing its stance against the
Hyundai executive because of pressure from outside.

"Rumors are widespread that Lee has built strong lobbying
networks with top government officials and leading
politicians, probably through donations of political
funds," said an industry source. "Lee is said to be
mobilizing his political and government connections to
rescue himself."

According to Hyundai sources, however, group owner Chung
Mong-hun has started to distance himself from Lee and is
weighing the timing for his dismissal. They forecast that
Mong-hun may act to let Lee go late this month. With the
group's $900 million attraction from U.S.-based AIG., Mong-
hun will feel increasingly pressed by the government's firm
stance against Lee, they said.

Elimination of Lee, Hyundai Engineering & Construction
president Kim Yoon-kyu and other problematic managers was
one of the key restructuring tasks imposed by the
government and Hyundai's creditors. But Hyundai managed to
avoid Lee's dismissal by stipulating ambiguous pledges in
its latest restructuring package. An aide to Lee said that
the Hyundai Securities chairman still remains reluctant to
leave the group's management.

On the other hand, another round of dispute between
siblings is looming at Hyundai, as Hyundai Capital
controlled by Mong-koo refused to come good on its earlier
promise to participate in the capital increase of the
ailing Hyundai Life Insurance controlled by Mong-hun. Due
to Hyundai Capital's refusal, Mong-hun's companies may have
to shoulder the whole of Hyundai Life's capital increase,
worth about 9.5 billion won ($8.5 million). (Korea Herald
19-Aug-2000)

KYONGNAM BANK: To sell securities against debt
----------------------------------------------
Kyongnam Bank, one of South Korea's six provincial
commercial lenders, said it plans to sell as much as 170
billion won (S$262 million) worth of asset-backed
securities next month to improve cash flow and reduce bad
loans.

LG Investment & Securities will handle the sale of debt
that will be backed mostly by overdue loans to companies
under court protection.

"The issue could be about 170 billion won or less with
maturities ranging from one to six years," said Mr Kwon Jae
Bong, an official at the financing department at Kyongnam
Bank. ""Final details will be set next week."

Korean banks are using asset-backed securities to help
reduce their non-performing loans and raise capital to
clear their balance sheets after the financial turmoil of
1997-1998 sparked widespread customer defaults.  Korean
companies sold 24.6 trillion won worth of asset-backed debt
in the first seven months of this year, an increase of more
than 20 times from the same period a year earlier, as
investors demanded more guarantees from borrowers.

Still, Standard & Poor's (S&P) warned that the sharp rise
in sales could disguise lingering problems in the financial
industry. "While Korea's rapid acceptance of structured
issuance can be applauded on the whole, financial
institutions continue to hold a significant portion of
their mountain of bad debt in the form of subordinated
notes, even after the debt is securitised," S&P said in a
report. (Bloomberg News, Straits Times  18-Aug-2000)


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

IDRIS HYDRAULIC: To undertake massive revamp
--------------------------------------------
Idris Hydraulic (M) Bhd is planning to undertake a massive
restructuring exercise, which will result in a 20-to-one
capital reduction and settlement of the dispute over Wisma
Idris via the transfer of the property's title to KFC
Holdings (M) Bhd.

The scheme of arrangement agreed to with its creditors
comprised six separate schemes involving debt of
RM782.2mil, the company told the KLSE yesterday. Idris
Hydraulic said the main objective of the proposed
restructuring exercise was to return the company to sound
financial standing which would benefit all parties,
including its creditors and shareholders.

"Subsequent to the proposed comprehensive restructuring
exercise, the principal business of Newco (the new company
that will emerge from the exercise) will be in the
insurance sector through Talasco," said the company.

The new company, which will assume Idris Hydraulic's listed
status, is Idaman Unggul Sdn Bhd, which is controlled by
Datuk Che Mohamed Annuar Che Mohamed Senawi.  Idris
Hydraulic also said Ishak Ismail had resigned as executive
deputy chairman as well as director of the company
effective Aug 15. (Star Online  18-Aug-2000)

IDRIS HYDRAULIC: Shares tumble over overhaul plan
-------------------------------------------------
Shares in Idris Hydraulic Bhd tumbled yesterday after news
of a restructuring which would leave a nephew of Malaysia's
Finance Minister Daim Zainuddin in control of the property
and insurance group.

Under a proposed US$192 million (S$330.24 million) debt
overhaul, Idris's listed status would be transferred to a
new company which would be controlled by Annuar Senawi, Mr
Daim's nephew, Idris said in a statement on Thursday.
Mr Annuar formerly headed Malaysia Nasional Insurance Bhd,
one of the biggest general and accident insurers in the
country.

Following the announcement of the deal, the stock market
value of Idris halved yesterday to 0.33 ringgit on 16.1
million shares traded.  Idris said it would cancel 95 per
cent of its 560 million shares and consolidate every 20
shares into one, reducing its share capital to 27.9 million
shares.

Every two consolidated shares will be swapped for one share
in the new vehicle, which will then make a two-for-one
rights issue at par.  It means minority shareholders would
see their holdings in Idris severely diluted.

Mr Annuar would buy 70 per cent of the new company under
the debt plan brokered by the government's Corporate Debt
Restructuring Committee, for RM150 million (S$67.77
million). The new company, Idaman Unggul Sdn Bhd, would
also take over Idris's insurance unit Talasco Insurance. --
(Reuters, Business Times  19-Aug-2000)

LION GROUP: Majority of creditors agree on rehab scheme
-------------------------------------------------------
The Lion Group said yesterday that all its major bank
creditors and at least 85 per cent of its non-bank
creditors to date have agreed to the group's restructuring
scheme unveiled early last month.

"So far we have discussed with nearly 85 per cent of (our
non-bank creditors) and I can say that all of them agree to
the restructuring," Lion Group chairman Tan Sri William
Cheng told reporters yesterday at a signing ceremony
between Amsteel Mills Sdn Bhd and Chuan Huat Hardware
Holdings Sdn Bhd in Kuala Lumpur.

He said the other 15 per cent of the group's non-bank
creditors have yet to commit themselves. According to him,
the group just needs time to have a one-to-one talk with
each of the creditors to convince them to go with the
restructuring scheme.

Commenting on news reports that the group was having
problems with its restructuring scheme, Cheng said, "I
don't think there's a problem ... it's procedure."

The Lion Group, which has accumulated almost RM10 billion
in debts over the past two and a half years, has 109 local
and foreign creditors which include Malaysan Banking Bhd,
RHB Bank Bhd, Chase Manhattan Bank and HSBC Bank. This
effectively makes it Malaysia's second largest corporate
debtor after the Renong group.

The group on July 5 unveiled a debt restructuring plan that
would reorganise five out of its six listed entities,
unlocking cashflows within the group to repay RM5.9 billion
in debts over the next seven to eight years.  The group had
previously given the assurance that none of its creditors
would need take a "haircut".

As part of the restructuring scheme, the group would divest
non-core assets in insurance and stockbroking and instead
focus on steel, property development and the timber
retailing business.  The group has 11 listed companies,
which include Amsteel Corp Bhd, Lion Land Bhd and Angkasa
Marketing Bhd.

Bernama reports: Amsteel Mills Sdn Bhd entered into a joint
venture agreement with Chuan Huat Hardware Holdings Sdn Bhd
(CHHH) to subscribe for 20 per cent equity interest in CH-
Lion Reinforcing Steel Sdn Bhd.  Amsteel Mills, which is
investing about RM2 million for the stake, has the option
to increase its shareholding to 49 per cent within three
years.

CH-Lion is currently 100 per cent owned by Chuan Huat
Hardware, a wholly-owned subsidiary of Chuan Huat Resources
Bhd. It has a paid-up capital of 1.91 million shares of
RM1.00 each, which upon completion of the joint venture
agreement will be enlarged to RM10 million.  Under the
agreement, CH-Lion is to source all its raw materials from
Amsteel Mills. (Business Times  17-Aug-2000)


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

CAPITOL WIRELESS INC.: Insolvency rules slow petitions
CIPI LEASING AND FINANCE: Insolvency rules slow petitions
CORP.INVESTS.PHILS.INC.: Insolvency rules slow petitions
---------------------------------------------------------
Rules on insolvency are preventing trial courts from
expediting the resolution of debt relief petitions of three
money-losing companies.

The Makati and Pasig trial courts, which are handling the
insolvency cases of telecommunications firm Capitol
Wireless, Inc. (Capwire), Corporate Investments
Philippines, Inc. (CIPI) and CIPI Leasing and Finance
Corp., are required to "strictly adhere" to the procedure
on hearing petitions for debt relief.  A source from the
Makati Regional Trial Court said such strict adherence
leaves judges without a choice but to follow the schedule
set by the law.

"The rules provide courts should hold the first hearing not
earlier than two weeks but not later than eight weeks from
the receipt of the case...The rationale is to give the
courts time to notify all the creditors of the ailing
companies and publish the date of hearing, in the event
parties could not be reached," said a source from the
office of Judge Sixto Marella, Jr. which is handling the
Capwire case.

With the passage of the Securities Regulations Code (SRC),
regional trial courts nationwide are now required to take
over certain cases previously handled by the SEC, including
intra-corporate disputes and cases involving suspension of
payments and rehabilitation.  The transfer of jurisdiction
is among the amendments the new securities law made on PD
902-A or the law reorganizing the SEC.

Judge Salonga last week extended by eight days the debt
relief status the Securities and Exchange Commission (SEC)
granted to the Santiago-owned phone company.  The temporary
suspension of payment of due obligations ended yesterday.
BusinessWorld learned Judge Marella will issue today an
order calling all Capwire creditors and officials to a
meeting on Sept. 14 in her sala to thresh out an acceptable
debt settlement.

The fresh order will effectively suspend for another month
all actions for claims against Capwire, whether they are
pending or still to be filed before any court, tribunal,
office, board, body and or commission. It will prevent
creditors from jeopardizing Capwire's day-to-day
operations.

Capwire is saddled with debts totaling 909 million
Philippine pesos (($20.24 million at PhP44.903=$1), with
government-owned Land Bank of the Philippines (LBP) as its
biggest creditor. The bank has receivables of more than
PhP300 million.  While the Capwire case has been acted upon
by the Makati RTC, the Pasig trial court executive judge
Rodolfo Bonifacio has yet to assign the CIPI and CIPI
Leasing cases to any of his judges.

He has set the raffle of the two insolvency cases on Aug.
31, or more than three weeks after these were remanded to
the trial court by no less than the Supreme Court.
While there is a rule on the period within which the first
hearing should be set, there is no similar requirement for
the assignment of insolvency cases.

Judge Bonifacio was not immediately available to comment on
the delay in the assignment of the cases.  The SEC earlier
granted CIPI Leasing a 30-day debt relief, which will end
on Aug. 26.  The corporate watchdog also granted the same
relief status to CIPI on July 25.  However, the suspension
of debt payment has been over for 60 days. (Business World
18-Aug-2000)

DMCI HOLDINGS INC.: Unveils major restructuring plans
-----------------------------------------------------
DMCI Holdings Inc., the publicly listed firm controlled by
the Consunji family, said Wednesday it will implement major
corporate restructuring in a bid to recoup its losses and
regain its position in the construction industry.

In an interview following the company's annual
stockholders' meeting, DMCI president Isidro A. Consunji
said it will pursue divestment plans in a bid to clean up
its books, retire some debts, and concentrate its efforts
on construction and housing development.  Consunji said
DMCI officers deemed to rethink its priorities, following
losses incurred due to the problematic financial condition
of the country.

"Unfortunately, all our major investments were affected by
the financial crisis, so that we plan to implement a major
corporate restructuring - sell the losing businesses and
focus on businesses which have high potential like housing
development as well as our core business of construction,"
Consunji said.

Consunji said DMCI would be selling within the next two to
three years its stake in Subic Water and Sewerage Co. Inc.
and some of its land in Metro Manila.  DMCI expects to
fetch some P70 million in divesting its 40-percent stake in
Subic Water, and some P3 billion from the sale of some land
parcels.

Consunji said the company is also planning to sell its
losing subsidiaries Semirara Coal Corporation and Atlantic,
Gulf and Pacific Company of Manila Inc. (AG&P), where it
has 74.4% and 40% stakes, respectively.

"We're divesting if someone's willing to buy. But
initially, we would be selling the assets of AG&P for
around P1.5 billion."

Semirara's poor performance is attributed to a weak
production capacity and the low world prices of coal.
In the case of AG&P, its liquidity position continued to
worsen amid the lack of substantial construction and
fabrication contracts, as well as huge short-term and long-
term interest-bearing debts to local banks and its
shareholders.

As of end-1999, Semirara had liabilities of P1.7 billion,
while AG&P's total debt was P1.492 billion.  DMCI's total
debts amounted to around P3.5 billion, around P1.7 billion
of which are notes due in April 2002.

"The game is to generate liquidity amid the tight business
environment, " said the DMCI official.  To make money, he
said the company would be more aggressive in tapping the
middle-income housing segment.  "After the restructuring,
we are looking at concentrating on the construction and
housing development businesses," Consunji said.

The company has a total of 15 housing projects in the
pipeline within the next two to three years.  It has
launched the Lakeview Manors and Hampstead Gardens projects
which are expected to generate total sales of P685 million
and P425 million, respectively.

"The housing projects are expected to rake in P6.9 billion
in sales in the next two to three years. This would
translate to a favorable operating margin of 20 percent,"
Consunji said.  "With our construction expertise and
sizeable land bank suitable for housing, we can offer
quality housing projects at a discount to the market."

The company's 100-hectare land bank in various locations in
Metro Manila is also a potential cash cow for the company.
At the moment, DMCI is bidding for a contract to construct
the foundation of mall tycoon Henry Sy's flagship project
Mall of Asia along Roxas Boulevard.

As of June 2000, DMCI has bagged the following major
projects: The NAIA-3 Headhouse structural works (P486
million), Malampaya Onshore Gas Plant civil works (P299
million), Watermains in upper Caloocan-Valenzuela (P144
million), Analog Devices test facility (P137 million),
Maynilad Water Services civil works (P116 million), and the
Boulevard 2000 road project (P102 million).  (ABS/CBN News
Channel  18-Aug-2000)

NATIONAL DEVELOPMENT CORP.: Likely to post P400M deficit
--------------------------------------------------------
The state-run National Development Co. (NDC) is expected to
post a P400 million in cash deficit this year, owing from
debt servicing on some of its assets, Department of Trade
and Industry secretary Manuel Roxas III bared Thursday.

Secretary Roxas made the estimate after SGV & Co.'s audit
confirmed that NDC has P4 billion in impaired assets. The
DTI official said half of these impaired assets are in
First Centennial Clark Corporation (FCCC) where it has 60
percent stake. Roxas said NDC is reviewing legal options on
how it will go about disposing receivables such as sale on
some or dacion en pago on others

"Every year, we have a P500-million hit on debt servicing,
both in interest payments and amortization," Roxas said.

He said most of the annual debt servicing is cornered by
FCCC's debt.  FCCC, a joint venture with Asiakonstruct,
contracted a loan of P1.4 billion to finance the
controversial P2-billion Clark Expo project.  The Expo
which was designed to be the centerpiece of the centennial
celebration of the Philippine independence in 1998 had to
close exhibition in June 1999 due to operational losses.

Aside from FCCC, the other two problematic accounts of NDC
are National Steel Corporation (NSC) where it has 12%
interest, and Philippine National Construction Corporation
(PNCC) where it has 12.5% equity.  From these accounts
alone, NDC has P1.1 billion worth of receivables and some
P2.72 billion in "investments with concerns."  These amount
to P3.72 billion that already wipes out the P3.9 billion
net worth of the NDC.

Initial estimates also revealed NDC has some P9.8 billion
worth of assets that should be enough to cover its P5.9
billion in liabilities if not for the dismal yields of the
three accounts.  Total unaudited liabilities per book,
incurred over the past years, accrued to P10.97 billion,
including obligations from various foreign and domestic
creditors.

On the other hand, "investment with concerns" are valued at
P1.82 billion in NSC and another P900 million in FCCC.

"We are going to recognize reality. It will be a zero-based
assessment...a one-time hit," said Roxas.

SGV & Co. was tapped by the government to review NDC's
assets and liabilities to determine the extent of the
impairment of some of its assets in certain receivables and
equity investments made in the past twenty years. The
auditing firm has until September to complete the
evaluation of the books.

The review will also entail the revaluation of NDC's land
assets to determine the market values of these properties.
Roxas said the total land assets owned by NDC are
undervalued, totalling to only P211 million.  As the
government's investment arm, the NDC invests in high-growth
projects where project sector investment is usually
elusive.

Earlier, Roxas ordered the NDC to draft a business plan
that will spur development in information technology, food
supply, and infrastructure.  Other equity investments of
the NDC include 100% ownership in National Truck &
Forwarding Corporation and National Stevedoring &
Lighterage Corp; 99.5% in Philippine International Trading
Corp; 91.7% in Manila Gas Corp (M-Gas), among others.

It also has substantial equities in Philippine Phosphate &
Fertilizer Corp. (Philphos), Semirara Coal Corp. and equity
positions in at least eight venture capital companies worth
P5 million each.  (ABS/CBN News Channel  18-Aug-2000)

RURAL BANK of SAN MIGUEL: DOJ files charges vs 2 execs
------------------------------------------------------
Two top officials of the defunct Rural Bank of San Miguel
(Bulacan) Inc. (RBSM) are now facing criminal charges
before the Department of Justice (DOJ) for violation of
general banking rules.

The Monetary Board, the policy making body of the Bangko
Sentral ng Pilipinas, reported that the DOJ has already
filed separately criminal charges against Hilario P.
Soriano, RBSM president and RBSM manager Rosalinda Ilagan.

"The DOJ has recently filed separate criminal charges
against two top officials of RBSM for violation of Article
315 of the Revised Penal Code (Estafa through falsification
of commercial documents) and Sec. 83 of Republic Act No.
337, as amended, based on the complaint of the BSP," the
Monetary Board, in a statement, said.

Earlier, the BSP and the Philippine Deposit Insurance Corp.
(PDIC) have filed criminal charges of estafa against
Soriano, for using bank's money for a related firm and
misappropriation of emergency loans from BSP totalling P21
million.  The BSP said Soriano and Ilagan are now charged
before Presiding Judge Petrita Braga Dime of Branch 14,
Regional Trial Court of Malolos and before Judge Aurora
Santiago-Lagman of Branch 77.

Last month, the former RBSM president was also charged for
violation of Sec. 83 of RA 337 or directors, officers,
stockholders and related interests (DOSRI) law in the same
RTC.  The arraignment of Soriano and Ilagan had been set
for September 5 and October 2, respectively. The BSP said
Soriano could face up to 20 years in in prison if found
guilty of these charges.

It would be recalled that on January 21 this year, the
Monetary Board prohibited RBSM from conducting business in
the Philippines.  The rural bank was placed under the
receivership of the Philippine Deposit Insurance Corp.
after finding that RBSM failed to pay its liabilities as
they fell due in the ordinary course of business.

Prior to this, the RBSM declared a bank holiday on Jan. 4,
2000 due to heavy withdrawals of its depositors. Aside from
RBSM, the Bangko Sentral has pending cases against
officials of other closed banks such as Orient Banking
Commercial Corp. and Urban Banking Corp. (Philippine Star
18-Aug-2000)


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

ADMIRALTY LEISURE: Court allows creditor repossession
-----------------------------------------------------
The High Court yesterday granted permission to Jurong Town
Corporation (JTC) to repossess the 12-hectare Tang Dynasty
City site in Jurong, a year after its operator, Admiralty
Leisure Pte Ltd, went into judicial management.

The court also allowed the judicial managers three months
to realise the remaining assets of the company.  The
judicial managers are working with the JTC subsidiary,
Singapore Leisure Industries (SLI), to reach a plan which
will allow for the disposal of Admiralty Leisure's
remaining assets in an orderly manner.

Yesterday's rulings mark the final chapter for the eight-
year-old theme park, developed by the family of Deacon Chiu
who controls Hongkong's Far East Holdings International.
The site had been leased from SLI on a 30-year term. The
theme park opened in January 1992. In 1996, the Chiu
family's Tang Dynasty City Pte Ltd (TDC) sold a majority
stake in the theme park to Admiralty Leisure.

Last June, SLI was granted an order to repossess the site
as it was owed rent but before it managed to exercise that
order, Admiralty Leisure placed itself under judicial
management to stave off creditors. This placed a moratorium
on the repossession of the property.

Messrs Ong Yew Huat, Nagaraj Sivaram and Fang Ai Lian from
Ernst and Young were appointed judicial managers.
Since then, SLI had agreed to allow efforts to find
interested parties who would take over the park, which was
closed last September as it was no longer viable to run it
in the condition it was in then.

BT understands that having exhausted all options, the
judicial managers decided finally to seek a short extension
of their appointment to further wind down Admiralty's
operations, after which they will hand over the site to
SLI.

According to an earlier report, Admiralty Leisure was
saddled with debts of more than $60 million as at March 31
last year, of which the main item was a $57 million sum it
owed TDC. This was the balance of the purchase
consideration for Admiralty Leisure's acquisition of the
theme park. (Business Times  19-Aug-2000)

NATSTEEL ELECTRONICS: Temasek to pump S$200mil into it
------------------------------------------------------
Temasek Group will pump S$200mil into NatSteel Electronics
Ltd (NEL) to finance the latter's expansion, the Singapore
Business Times reported.

The world's No. 6 electronics contract manufacturer was
quoted as saying it would place out 10.46 million new
shares for S$50mil and issue S$150mil convertible bonds to
Temasek Capital (Pte) Ltd. Both the placement and
conversion prices are set at S$4.78, or 1.2% off the
closing price of NEL shares on Tuesday.

According to the report, the zero-coupon bonds would be
convertible within five years. If not converted by then,
mandatory conversion will take place, subject to certain
conditions.  The placement and bond conversion will create
a total of 41.84 million new shares, representing 9.7% of
NEL's existing capital.

An NEL statement said the funding exercise would address
investors' concern over its gearing. It would save the firm
S$15.5mil in interest costs a year, which would flow
through directly to earnings.  However, the enlarged base
of shares would dilute earnings per share by about 9.6%.
NEL chief financial officer Chay Yee Meng said the move
would help the group expand in the United States.

An analyst with a local brokerage said: "This deal is
neutral to positive for NEL mainly because it reduces (the
company's) overall gearing. This was one of the main
concerns we had after the company's interim results."

He said that at the end of NEL's briefing for analysts last
week, there was some doubt over whether the group could
complete some of its planned acquisitions.  "It now appears
that it can do so," the analyst said.

Chay said NEL's plans to list in New York would bring
several advantages to the group, but declined to state a
timeframe.

"We are still actively looking into it," he said. "Based on
our size the other players in the same market of comparable
size are all in the US. A listing there should lead to a
better valuation of our shares in comparison to our peers.
Secondly, in line with the industry practice of issuing
share options to employees, it will be more desirable to
have a US-based share."

NEL plants have been contracted to make electronic
components used in computers and appliances sold by major
information technology brand names like Apple, Compaq,
Hewlett-Packard and IBM. (The Star Online, Business Times
18-Aug-2000)

SOGO (Singapore): Judicial managers confirmed
---------------------------------------------
The High Court yesterday confirmed the appointment of
judicial managers for two of the three Sogo companies that
filed for interim judicial management last month.

The hearing for the third, Tararone Investments, which runs
the Sogo Food Hall in the basement of Paragon building on
Orchard Road, was adjourned for two weeks. This is to give
more time for the filing of affidavits following an
objection by creditor and supplier Benelux Flowers & Food
Pte Ltd that Tararone should not have the same judicial
managers as the two other Sogo units -- Sogo Department
Stores (S) Pte Ltd and SIDC (S) Pte Ltd -- as there may be
a potential conflict of interest.

This is because Tararone is owed about $350 million by the
two other companies. Ernst & Young as judicial manager for
Tararone has to recover debts made to the two other
companies. However, this may potentially conflict with its
judicial manager role for the two other companies which
requires it to preserve their assets.

Benelux supplies fruits and vegetables to Sogo's
supermarket operations and is owed $244,000 by Tararone.
Instead, Benelux proposed that Gautam Banerjee & Chan Ket
Teck, partners of PricewaterhouseCoopers, be appointed
judicial managers for Tararone.

Last month, Ong Yew Huat, Nagaraj Sivaram and Fang Ai Lian
from Ernst & Young were appointed interim judicial managers
for all three Sogo companies. The companies sought to be
placed under judicial management to prevent creditors from
scrambling for their assets following their Japanese parent
group's move to file for bankruptcy.

Sogo Department Stores runs the flagship department store
and supermarket at Raffles City while SIDC is the sole
shareholder of Tararone.  In court yesterday, another
creditor, Landex (S) Pte Ltd, a tableware supplier who is
owed about $150,000, also objected to Sogo Department
Stores being placed under judicial management.

Landex's counsel, Alvin Tan from Wong Thomas and Leong,
argued that the same objective that can be achieved through
judicial management could be achieved by liquidation.
However, Paul Fitzgerald of Arthur Loke Bernard Rada and
Lee, representing Sogo, argued that judicial management
would allow the retailer a more advantageous use of its
assets and enable it to wind down orderly.

Judicial Commissioner Chan Seng Onn confirmed the judicial
management order for Sogo Department Stores, as well as for
SIDC. There was no objection to the latter's petition for
judicial management. Both appointments are for 180 days.
Ernst & Young's Mr Ong said yesterday plans are being drawn
up to wind down the operations of Sogo's flagship Raffles
City outlet as the lease has not been renewed.

Sources tell BT that over at the Paragon, discussions are
in progress involving the mall's landlord, the judicial
managers and potential replacement supermarket tenants for
the 54,000 sq ft that Tararone leases in the basement of
the prime mall.  The three replacement tenants being
considered are the Cold Storage group, NTUC FairPrice's US-
styled Liberty Market and Japanese retailer Daimaru.
(Business Times  19-Aug-2000)


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

CAPETRONIC INT'L: Records Bt623 M Q2 loss
-----------------------------------------
Capetronic International (Thailand) recorded a net loss of
Bt623 million for the second quarter of this year. By
comparison, the company posted a net loss of Bt112.9
million for the same period last year. For the first half
of the year, Capetronic recorded a Bt683.99 million net
loss, up markedly from a Bt134 million net loss for the
same period last year.

HERMARAJ LAND AND DEV.: Records Bt382.3M Q2 loss
------------------------------------------------
Hemaraj Land and Development posted a Bt382.3 million net
loss for the second quarter of this year, a reversal from
the net profit of Bt81 million it posted for the same
period last year. For the first half of this year, Hermaraj
posted a net loss of Bt476 million, actually down from a
net loss of Bt659 million for the first half of last year.

MK REAL ESTATE DEVELOP.: Convertible debentures cure debt
---------------------------------------------------------
Om-sin Poonpol Fixed Income Fund (OSPP), under the
management of National Asset Management Company Limited has
converted debentures of M.K. Real Estate Development Public
Company Limited (MK#1) to Convertible Debentures on August
16, 2000. The Script will be issued  within 45 days.

Details of assets in settlement of debt obligations by
alternative means:  Convertible Debentures receive in
settlement of debt obligations maturing August 16,2007
carries no Interest during years 1-4 and 2% p.a. interest
during years 5-7. Total value of assets in settlement of
debt obligations by alternative means Face Value Baht
17,500,000.00

Entitlement to the assets received in settlement of the
debt obligations will be to unit holders whose
registered names appear at maturity of those closed-end
funds.  Convertible Debentures receive in settlement of
debt obligations will not be included in the  Net Asset
Value of the fund, unless value is realized such as through
actual sale.

Any fees arising from the sale of convertible debentures or
stocks (after stock option is  exercised) or none if held
to maturity.  Expenditures to distribute proceeds to
unitholders.

No. of unitholders (as of August 7, 2000) is 300.
Approximately Baht 18.00 per payment per person (exclude
VAT) or aggregate of approximately Baht 5,400.00 per
payment (exclude VAT). (Stock Exchange of Thailand  18-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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