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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

             Tuesday, August 29, 2000, Vol. 3, No. 168

                                      Headlines


* A U S T R A L I A *

DELTA GOLD LTD.: Abnormal, extraordinary losses forecast
FLINDERS ISLAND SCHUTT AIR LINES: Goes into liquidation
RIO ALGOM LTD.: Purchaser to assume $900M in debt


* C H I N A  &  H O N G  K O N G *

CLADDING SYSTEMS (ASIA)LTD: Facing winding up petition
CONFIDA LTD: Facing winding up petition
GEEWING CO.LTD.: Facing winding up petition
GRANDMAKE ENGINEERING LTD: Facing winding up petition
GUANGZHOU INT'L TRUST: Debt waiver being sought
KWAN-PTP ARCHS.&HOSP.PLANNERS: Facing winding up petition
PING YAT ENTERPRISES CO.LTD.: Facing winding up petition
SUCCESS KING HOLDINGS LTD: Facing winding up petition
V&T INVESTMENTS LTD: Facing winding up petition


* I N D O N E S I A *

PLN: President denies facing bankruptcy
PT BARITO PACIFIC TIMBER: Wins debt rescheduling
PT INTI INDORAYON UTAMA: Gets debt rehab approval


* J A P A N *

MITSUBISHI MOTORS: Shares fall on resignation speculation
NIPPON CREDIT BANK: Gov't to give $29B cash injection
SNOW BRAND MILK PRODUCTS: Stores pull cheese products
SOGO CO: Shareholder to sue ex-execs
TAISHO LIFE INSUR.CO.: FSA orders business halt


* K O R E A *

HYUNDAI GROUP: More private wealth to be used for rescue
SAMSHIN ALLSTATE: Ordered to improve management
SAMSUNG ELECTRONICS: Bribery scandal deepens
SAMSUNG MOTORS: Sale runs into last-minute obstacle
SHINDONGAH FIRE & MARINE: FSC advocates its sale
WOO BANG HOUSING & CONST.: Declare insolvent


* M A L A Y S I A *

DRB-HICOM: May sell 800M Ringgit in bonds to repay debt
DUALQUEST SDN: Part of merger rehab plan
EKOVEST DEVELOPMENT SDN: Part of merger rehab plan
MALAYSIAN GENERAL INVEST.CORP.: Part of merger rehab plan
PEMBINAAN SAHABATJAYA SDN: Part of merger rehab plan
TUNAS MELATI SDN: Part of merger rehab plan


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

ALL ASIA CAPITAL: SEC says it violated STCP policies
ASB GROUP: Submits rehab plan
PHILIPPINE NAT.BANK: Expects narrower loss this year
PHIL. TELE.& TELE.: Expansion plans in spite of rehab
PRIME BANK: No bidders for branches


* T H A I L A N D *

SOON HUA SENG: Lawsuit ahead if rehab deal not struck soon
SUPALAI: Debt-to-equity swap completed


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

DELTA GOLD LTD.: Abnormal, extraordinary losses forecast
--------------------------------------------------------
Delta Gold Ltd said today that abnormal and extraordinary
writedowns will be necessary because of prevailing
uncertainties in the Solomon Islands and Zimbabwe.

Delta said that this will result in a significant loss
after these writedowns.  The aggregate of net abnormal and
extraordinary losses is expected to be in the range of $130
million to $150 million.

Delta Gold has the 130,000 ounce per annum Gold Ridge mine
in the Solomon Islands operation which has been left
deserted after a coup in June.  Delta acquired the mine
only in May following the completion its friendly
acquisition of Ross Mining NL.

Delta also operates the Eureka gold mine in Zimbabwe.
In its March 2000 part A statement for the takeover of Ross
Mining, Delta Gold forecast a net profit for 1999/2000 of
about $34 million and, subject to achievement of that
earnings forecast, an intention to distribute a final
dividend of nine cents per share.

Delta said that in June 2000, political and social unrest
in the Solomon Islands and economic conditions in Zimbabwe
led to the suspension of operations at the Gold Ridge and
Eureka mines.  Delta said that the changed circumstances
will have only a limited impact on operating profit for
1999/2000.

But its directors had determined that abnormal and
extraordinary writedowns will be necessary because of the
prevailing uncertainties in the Solomon Islands and
Zimbabwe.
"This will result in a significant loss after these
writedowns," Delta said.

Delta said that as a consequence, the final dividend will
not be paid.  Shares in Delta were trading seven cents
lower at $1.36. (Australian Financial Review  26-Aug-2000)

FLINDERS ISLAND SCHUTT AIR LINES: Goes into liquidation
-------------------------------------------------------
Flinders Island Schutt Air Lines, the only air link to
Flinders Island, Tasmania, has gone into liquidation.

A committee of creditors has been formed to assist the
appointed liquidator investigate Island Air's affairs.
Liquidator Barry Hamilton confirms discussions are taking
place between him, Melbourne businessman Robert Pratt and
Schutt Aviation to ensure a continued service for Flinders
Island.

Schutt Aviation is proposing to use two 14-seater turbine
planes to fill the gap left by Island Air. Island Air is
the fourth airline to cease service to the island since
1996.

RIO ALGOM LTD.: Purchaser to assume $900M in debt
-------------------------------------------------
Billiton Plc, third-largest aluminum producer, agreed to
buy copper miner Rio Algom Ltd. for $2 billion in cash and
assumed debt, thwarting a competing bid from Noranda Inc.
and Chile's Codelco.

The company will pay C$27 a share in cash, or C$1.7 billion
($1.14 billion), 10 percent more than Noranda and Codelco's
unsolicited bid Tuesday. Rio Algom backed the offer from
Billiton, which will assume $900 million of debt and warned
the plan will hurt profit this year. Billiton stock fell 3
percent.

Until now, Billiton had focused on metals such as aluminum,
nickel and chrome and mined coal, largely in South Africa
and Europe. The plan marks Billiton's biggest move yet into
Latin America, which last year produced 12 percent of
sales.

Copper prices have climbed 44 percent from a 12-year low of
60.8 cents a pound on May 28, 1999. They reached 87.40
cents a pound on the New York Mercantile Exchange today.
Copper traded as high as $1.444 a pound on July 14, 1995.
Rio Algom shares rose C$2.50, or 9.5 percent, to C$28.75 in
Toronto Stock Exchange trading, above Billiton's offer and
an indication that investors expect Noranda and Codelco to
raise their bid.

Billiton declined to disclose in advance of its annual
results announcement next week how much the acquisition
will increase debt. Last year, the company reported it owed
creditors some $1.2 billion in loans and other debt.
Investors said they were disappointed that Billiton is
moving away from aluminum, where further consolidation is
expected.

In making its offer, Billiton is assuming copper prices
will rise from 80 cents a pound in the first quarter this
year to 84 cents next year and 95 cents in the long-term.
Rio Algom can break even at 71 cents a pound, Gilbertson
said, even after financing costs.

Billiton's history dates to 1860, when it acquired
concessions to tin deposits on an island located between
Sumatra and Borneo, which gave the company its name. In
1970, Royal Dutch/Shell Group bought the business, which it
sold to South Africa's Gencor Ltd. in 1994. Billiton was
listed on the London Stock Exchange in 1997.

Its assets now include aluminum smelters in South Africa,
nickel operations in Australia and Colombia and coal mimes
in Canada.  Billiton looked at Rio Algom earlier this year,
said Gilbertson, and talks resumed this month.  Rio Algom
has agreed not to solicit or encourage any offers from
rivals and gave Billiton the right to match any competing
offer.

The bid is subject to approval by holders of at least 66.67
percent of Rio Algom shares. Billiton is being advised by
BMO Nesbitt Burns and Chase  Manhattan. Rio Algom is being
advised by RBC Dominion Securities and Credit Suisse First
Boston.  Billiton shares are down more than 20 percent this
year, valuing the company at about 6.2 billion pounds ($9.1
billion). (Bloomberg, SuratkabarCom  26-Aug-2000)


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

CLADDING SYSTEMS (ASIA)LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on September 6 on the petition of
Koon Wah Mirror Factory Limited for the winding up of
Cladding Systems (Asia) Limited. A notice of legal
appearance must be filed on or before September 5.

CONFIDA 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
Cheung Kit Yin for the winding up of Confida Limited. A
notice of legal appearance must be filed on or before
September 26.

GEEWING CO.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
Marblesum Limited for the winding up of Geewing Company
Limited. A notice of legal appearance must be filed on or
before September 19.

GRANDMAKE ENGINEERING 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
Yip Pi Lam for the winding up of Grandmake Engineering
Limited. A notice of legal appearance must be filed on or
before October 10.

GUANGZHOU INT'L TRUST: Debt waiver being sought
-----------------------------------------------
A local, government-affiliated nonbank in Guangzhou,
southern China, has asked creditors of Guangzhou
International Trust and Investment Corp. (Gitic) to waive
50 percent of their debts or allow it to pay back the
principal amount of debts in 10 years.

Gitic has an estimated 29.7 billion yuan in debts, and
reportedly will urge creditor banks, including a number
from Japan, to make a choice of either method by the end of
this year.  If a creditor chooses the 50 percent waiver of
debt, the other half is proposed to be paid back in a lump
sum within six months from the debt-relief agreement.

If a creditor who chooses the other option, to be paid back
in full in 10 years, the creditor first will be repaid 30
percent of its loans by the nonbank, which will raise money
by several methods, including selling Gitic assets.  The
remaining 70 percent will be paid in the form of shares in
a new bank to be set up by the Guangzhou municipal
government. The shares will be convertible into cash after
10 years.

KWAN-PTP ARCHS.&HOSP.PLANNERS: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on Ocotber 4 on the petition of Liu
Chong Hing Bank Limited for the winding up of Kwan-PTP
Architects & Hospital Planners Limited. A notice of legal
appearance must be filed on or before October 3.

PING YAT ENTERPRISES CO.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
Fok Sze Man Cristina for the winding up of Ping Yat
Enterprises Company Limited. A notice of legal appearance
must be filed on or before October 10.

SUCCESS KING HOLDINGS LTD: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on October 25 on the petition of
Tang Yau Hung for the winding up of Success King Holdings
Limited. A notice of legal appearance must be filed on or
before October 24.

V&T INVESTMENTS 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
Chan Cheung Suk Chun for the winding up of V&T Investments
Limited. A notice of legal appearance must be filed on or
before September 13.


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

PLN: President denies facing bankruptcy
---------------------------------------
State-owned Electricity Company (PLN) president Kuntoro
Mangkusubroto, denies allegation that the firm will go
bankrupt.

Reportedly, PLN has sent letters to the government asking
for help to overcome the Rp1tr losses, which was potential
to make it bankrupt. Kuntoro made his denial after
attending the ceremony of duty transfer from the former
Minister of Energy and Mineral Resources Susilo
Bambang Yudoyhono to Purnomo Yusgiantoro at the Minster's
office on Saturday (August 26).

Even though denying the allegation, Kuntoro admitted that
he has sent a letter to the government for help in
overcoming the losses. "I have never made a statement that
PLN will bankrupt," he stressed. In the letter, PLN also
asked several new policies, such as haircut. He said that
the letter has been sent, but there has not been any
respond yet from the government.

"The concept is still the same in form of debt equity
swap," Kuntoro added. "It is the finance minister that
should settle the matter. Yet, there is a possibility that
the matter will not be settled immediately because the
ministry is still in a transition period.  Let him (Finance
Minister) study the matter first. Hopefully by the end of
this year, the matter could be settled."

Moreover, there isn't any deadline set by PLN for the
government to settle the matter.  He unveiled that the
electricity industry grew by 9% last year. For this year,
he expects that electricity demand in several provinces
such as Lampung will grow 15%, East Java by 13%, and Bali
by 15%.

"If the growth rate maintained until the second quarter of
this year, then it's likely that we would be able to reach
the target," he said. (IndoExchange News  28-Aug-2000)

PT BARITO PACIFIC TIMBER: Wins debt rescheduling
------------------------------------------------
Major creditors of timber company PT Barito Pacific Timber
have agreed to reschedule debt totaling US$ 22 million.
Susana Susanto, the president of the country's largest
plywood producer, confirms Bank Mandiri agreed to roll over
the debt repayment until 2006.

PT INTI INDORAYON UTAMA: Gets debt rehab approval
-------------------------------------------------
Creditors of financially troubled PT Inti Indorayon Utama
have agreed in principle to restructure debt totaling US$
414 million. Company management said the final agreement on
debt restructuring would be signed after its factory in
Porsea, North Tapanuly, resumes operation. The company's
operations have been suspended since 1998.


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

MITSUBISHI MOTORS: Shares fall on resignation speculation
---------------------------------------------------------
Shares in Mitsubishi Motors Corp plunged 17 percent on
Monday on nagging speculation that its president will
resign over a cover-up scandal and after a police raid of
the firm on the weekend.

Police searched the company headquarters and factories on
Sunday after the car maker's admission last week that it
had systematically covered up customer complaints for 20
years.  That raid, which could lead to criminal charges
being placed against company officials, helped intensify
speculation that Mitsubishi President Katsuhiko Kawasoe was
preparing to resign under pressure from other Mitsubishi
group firms.

By midday, Mitsubishi's shares were at 342 yen, down 70 yen
or 16.99 percent from last Friday's close.  They were still
above their year low of 305 struck in January before
DaimlerChrysler agreed to buy a 34 percent stake in the
automaker, announced in March.

But Kawasoe, who became president in 1997 after his
predecessor stepped down to take responsibility for a
corporate racketeering scandal, denied media reports that
he was about to resign.

"I shall personally assume full responsibility for doing
everything necessary to regain the trust and confidence of
customers and all who have dealings with the company," he
said in a statement.  "To this end, I and my management
team will, at the earliest possible time, devise a set of
measures to rectify the situation and to prevent any
recurrence, as well as taking strict disciplinary action
within the company."

Auto analysts said that they hoped that Kawasoe, the
architect of Mitsubishi's alliance with DaimlerChrysler and
responsible for much of the automaker's restructuring
efforts, would not be swayed by pressure to resign.

"Kawasoe resigning is absolutely the worst thing that could
happen to Mitsubishi. It sends the wrong signal to
Mitsubishi shareholders and DaimlerChrysler," said ING
Baring Securities analyst Howard Smith.

Smith added that bowing to pressure from other Mitsubishi
group firms would show that the automaker had not yet
become an independent company even though Mitsubishi group
firms were no longer the largest stakeholder in the firm.

A couple of newspapers and wire services reported Monday
that Kawasoe was moving closer to resigning. Kyodo news
agency said the resignation was likely to come after the
Transport Ministry had decided on punishment for the firm.
Transport Minister Hajime Morita said on Friday that the
ministry was considering filing a complaint against the
firm with the Tokyo Metropolitan Police for violation of
transportation laws and that a decision would be made next
month.

Last month, the ministry -- acting on a tip-off -- found
unreported consumer complaints in a company locker room,
leading the company to recall more than half a million
vehicles.  Announcing the results of an internal probe last
Tuesday, Mitsubishi said it would widen the recall to
almost 620,000 vehicles. It has also offered to check
200,000 other vehicles.

Mitsubishi has estimated the cost of the recall to be 7.5
billion yen ($70.13 million) -- an amount that analysts say
the company should be able to absorb easily. (European
Investor, Reuters  28-Aug-2000)

NIPPON CREDIT BANK: Gov't to give $29B cash injection
-----------------------------------------------------
The Japanese government will pump an additional 3,149.7
billion ($29.5 billion) into Nippon Credit Bank, the
nationalised bank which collapsed in 1998, in an effort to
balance its books and sweeten its planned sale.

The move smoothes the way for the delayed - and
controversial - sale to a consortium led by Softbank, the
internet group, which is paying Y1bn for the government's
2.5bn shares.  Markets had expected the government to
inject sufficient cash to balance NCB's books.

But the huge amount of taxpayers' money being used is
likely to provoke further political controversy. The
Deposit Insurance Corporation (DIC), the government
organisation that is putting the money into NCB to cope
with a capital deficit of Y3,242.8bn, will provide a
further Y93.1bn to cover losses NCB has accumulated since
it was nationalised.

The DIC will also take on Y82.4bn in bad loans from NCB -
on top of Y236.4bn assumed previously - and buy, over five
years, stock worth Y673.2bn held by NCB, which it hopes can
eventually be sold at a higher price.  The boost for NCB
brings total government spending on cleaning up
nationalised banks to Y17,481.3bn in a bid to steady the
financial system.

Softbank will be the first non-bank corporation, with its
partners, Orix, the leasing company, and Tokio Fire and
Marine, the insurer, to enter the traditional banking
sector.  However, there is deep concern that some of NCB's
loans, which have been classified as "good" loans, are in
fact "bad."

The DIC admitted on Friday that loans to Sogo, the retailer
which collapsed with Y1,870bn in liabilities, remained as
"good" loans.  This raised questions about whether the
government will need to spend even more on NCB, which will
be sold with reserves of only Y513.7bn, or 16 per cent of
its estimated assets of Y3,195.8bn. (Financial Times  25-
Aug-2000)

SNOW BRAND MILK PRODUCTS: Stores pull cheese products
-----------------------------------------------------
Major supermarkets and convenience stores across the
country have removed cheese products produced at Snow Brand
Milk Products Co.'s Taiki plant in Hokkaido from their
shelves.

Operations at that plant were suspended on the order of the
prefectural government following the discovery of toxic
staphylococcus bacteria in skim milk produced there. Jusco
Co., a major retailer headquartered in Chiba, stopped
selling all Snow Brand products at its 300 supermarkets on
July 12 after halting the sale of Snow Brand milk products
on July 7.

Jusco resumed selling Snow Brand products on Aug. 6,
following the Aug. 3 declaration of the Health and Welfare
Ministry that they were safe. But as of Wednesday, the
company has stopped selling nine kinds of Snow Brand cheese
products, including Camembert cheese, all of which were
produced at the Taiki plant.

Seiyu Ltd. resumed sales of all Snow Brand products on Aug.
3, but ceased once again on Wednesday. Ten kinds of Snow
Brand cheese products produced at the Taiki plant were
removed from the shelves of the company's 200 nationwide
outlets on that day.

SOGO CO: Shareholder to sue ex-execs
------------------------------------
A Sogo Co. shareholder is preparing to file a 10 billion
yen suit on behalf of himself and others against the failed
department store chain's former chairman, Hiroo Mizushima,
and other former top executives.

The plaintiff, whose name is being withheld to protect his
privacy, is an employee of Sogo in Fukui Prefecture.
Representing himself and other shareholders in the suit, he
claims that the Sogo companies increased their losses by
guaranteeing one another's liabilities.

The plaintiff is also a member of the civic group,
Stockholder Ombudsman, and plans to send Sogo's auditors a
notice urging them to file a compensation suit against
Mizushima and other former top executives. If the auditors
do not comply by filing a suit within a month of receiving
the notice, the company employee will himself file a
similar damage suit with the Osaka District Court.

This is the first time former Sogo executives have been
sought for taking legal responsibility for the chain's
collapse. Sogo filed with the Tokyo District Court for
protection from creditors in July under a new law
corresponding to the U.S. Bankruptcy Reform Act.

TAISHO LIFE INSUR.CO.: FSA orders business halt
-----------------------------------------------
The Financial Services Agency (FSA) ordered Taisho Life
Insurance Co. on Monday to halt most of its operations
following the arrest earlier in the day of the head of the
company involved in rescuing it from the brink earlier this
year.

The financial industry watchdog ordered the insurer to stop
selling new policies and to cease complying with customer
requests for cancellation of insurance contracts. Under the
FSA directives, the government will guarantee payment of
benefits against the deaths of individuals covered by the
insurer's policies through next March, the agency said.

But policyholders with some types of insurance policies
whose premiums are to be partially refunded at maturity and
those who have subscribed to the insurer's pension plans
are likely to suffer benefit cutbacks below contractual
terms, it said.  The orders were issued after prosecutors
arrested Yoshihiko Kokura, president of Claremont Capital
Holding Inc., earlier the same day on suspicion he
defrauded the insurer of 8.5 billion yen.

In addition to the 8.5 billion yen investment, the agency
said, Kokura urged Taisho to buy more than 17 billion yen
in both corporate bonds issued by a foreign firm whose
corporate identity is shrouded in secrecy and mutual funds
whose value is deemed almost nil.  As a result, the FSA
declared the insurer bankrupt, saying it has engaged in
'extremely inappropriate' investment activities.

Taisho becomes the fourth insurer to go bust since 1997,
when Nissan Mutual Life Insurance Co. went belly up. But
Taisho is the first insurer the agency has declared
insolvent without first being informed that the insurer is
giving up on its reconstruction efforts.  The FSA plans to
ask the Life Insurance Association of Japan to oversee the
winding up of the insurer, FSA officials said.

Even before the Claremont mess, Taisho saw its
profitability plunge as a result of a 'negative spread,' in
which the yield on its investment returns dropped below the
yields it had guaranteed to its policyholders. The
Financial Supervisory Agency, the predecessor of the FSA,
found that the company had a negative net worth of 4.3
billion yen as of March 31, 1999.

The Financial Supervisory Agency invoked so-called prompt
corrective action in February this year under which it
ordered the insurer to quickly recapitalize. Claremont
stepped forward as chief investor in new shares floated by
the company, buying a total of 10.8 billion yen in new
stock to gain a 48.5% stake and a strong say in management.

On instructions from Kokura, the FSA officials said, the
insurer since March has bought 25.8 billion yen in suspect
bonds, mutual funds and certificates of deposit.  After
government certified accountants later warned the
investments have 'no value as assets,' Kokura bought back a
10 billion yen portion.

"The identifies of the issuers of those investment tools
bought by the insurer have been shrouded in secrecy," an
FSA official said.

Taisho Life President Kiyoshi Hosokawa told a news
conference, "I'm still not sure whether we have been
defrauded." Asked whether he considered himself responsible
for the company's woes, he said, "I want to consult with
the government-appointed administrators."

Taisho Life was founded in 1913. It has a workforce of
1,265. Total assets stood at 204.4 billion yen as of March
31 this year.  (Japan Economic Newswire  28-Aug-2000)


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

HYUNDAI GROUP: More private wealth to be used for rescue
--------------------------------------------------------
Chung Mong-Hun, a key member of the founding family of the
Hyundai Group, will use a major portion of his private
wealth to help bolster the group's troubled construction
unit, a creditor bank said Saturday.

Chung Mong-Hun, a son and successor to the group's founder,
Chung Ju-Yung, will dispose of millions of dollars in
private wealth including securities of other Hyundai units,
the Korea Exchange Bank (KEB) said.  With the proceeds,
Chung Mong-Hun will buy new shares of Hyundai Engineering
and Construction Co. to help recapitalize the group's
flagship, which faces a severe liquidity crunch.

"We have advised Chairman Chung Mong-Hun to sell his shares
in other Hyundai units in order to help enhance credibility
of Hyundai Engineering and Construction," a senior KEB
official who asked not to be named told journalists.

Hyundai Group officials also said Chung Mong-Hun had told
the group's corporate restructuring committee of his
intention to dispose of his private wealth to take part in
the new rights issue of Hyundai Engineering and
Construction. But it has not yet been decided which of the
shares Chung Mong-Hun owns will be sold and how much.

The total value of Chung Mong-Hun's holdings in Hyundai
units is estimated at 244 million dollars, including a
7.82-percent stake in Hyundai Engineering and Construction,
1.7 percent of Hyundai Electronics Industry and 4.9 percent
of Hyundai Merchant Marine.  The Hyundai Group this month
announced plans to raise hundreds of millions of dollars to
rescue Hyundai Engineering and Construction, whose crisis
drained confidence from the entire economy, dragging
down the stock market.

The group's patriarch, Chung Ju-Yung, agreed to sell his
9.1 percent stake in Hyundai Motor Co. down to 3.1 percent
by the end of this year and put the proceeds worth 196
million dollars towards rescuing the construction unit.
(Agence France-Presse  26-Aug-2000)

SAMSHIN ALLSTATE: Ordered to improve management
-----------------------------------------------
The Financial Supervisory Service (FSS) has issued a
management improvement order to Samshin AllState Life
Insurance Co.

According to the FSS, the order requires the company to
raise its reserve ratio beyond 100 percent from the current
minus 1,414 percent by the end of November through a
capital increase. The financially troubled insurer, lacking
58.7 billion won in reserves against claims, must provide a
rationalization plan to the Financial Supervisory
Commission, FSS's policy-making body.

Unless the commission approves Samshin AllState's
rationalization plan, the company will be forced to merge
with another company, be sold or be liquidated. U.S.
insurer AllState holds a 50 percent stake in Samshin
AllState capitalized at 50 billion won. Hanhwa Securities
has a 10 percent state, while President Kim Kyong-yop owns
a 12 percent interest.

SAMSUNG ELECTRONICS: Bribery scandal deepens
--------------------------------------------
Samsung Electronics Co.'s bribery of its outside directors,
coming on the heels of other scandalous incidents,
testified vividly to just some of the Samsung Group
company's rampant corruption and immoralities, critics said
yesterday.

More seriously, the Samsung graft scandal cast deep doubts
over the top chaebol's repeated reform pledges to improve
managerial transparency by filling half of their boards
with outside directors.  On the surface the chaebol pride
themselves on expanding the appointments of outside
directors and auditors.

However, the conglomerates are secretly bribing their
outside managers to overlook managerial irregularities,
they lamented.  According to revelations by the People's
Solidarity for Participatory Democracy, Samsung Electronics
was found to have handed over 1.67 billion won ($1.5
million) in company stocks to Education Minister Song Ja, a
one-time outside director of the electronics firm, last
year.

A total of 5,606 Samsung Electronics shares, valued at 1.67
billion won, had been given to Song between April 1998 and
April 1999, when the renowned scholar was serving as one of
the company's outside directors, said the PSPD, a Seoul-
based anti-chaebol activists' group. Song, under pressures
to step down from his cabinet post, admitted he had
received the Samsung shares and said that he will donate
them to charity funds.

PSPD activists insisted that Samsung is also suspected of
having bribed other outside directors and auditors in an
attempt to hinder their lookout for managerial
irregularities. The graft scandal cast further doubts over
the Samsung company's promises to improve its accounting
transparency and corporate governance, they said.

In addition, the incident once again pointed the spotlight
at Samsung companies' widespread misappropriations of
corporate finances to serve the interests of Samsung Group
Chairman Lee Kun-hee's family and other owner-managers, at
the sacrifice of foreign and minor shareholders' profits.

"Samsung's continued disregard of minor shareholders'
rights is already prompting foreign and domestic investors
to dump Samsung stocks," said a PSPD spokesman.

Indeed, the share prices of major Samsung Group companies,
including Samsung Electronics, Samsung Electro-Mechanics
and the unlisted Samsung Life Insurance, have posted sharp
falls this year, amid the rapidly eroding investor
sentiments towards the troubled Samsung Group and its
immoral chairman Lee. Foreign investors, who hold nearly
half of Samsung Electronics shares, are already showing
signs of dumping the shares, according to industry sources.

Aside from the graft scandal, Samsung Electronics has been
under fire for assisting chairman Lee's large illicit
transfers of wealth and assets stolen from company coffers
to his only son, Jae-yong, anti-Samsung activists said.
Actually, Jae-yong, a graduate student staying in the
United States, was recently found to have received 129
Samsung Electronics shares under the company's employee
compensation program, though he has never worked for the
company.

Samsung Electronics is also accused of having diverted
hundreds of billions of won into dubious venture
investments masterminded by Jae-yong's eSamsung. The
electronics giant has also made massive transfers of its
operational earnings to help prop up sagging the share
prices of its weak sister companies, such as Samsung
Electro-Mechanics.

"Samsung's bribery of outside directors ran directly
counter to the government's chaebol reform drive calling
for filling half of large enterprises' boards with
outsiders to upgrade decision-making transparency," said
the PSPD spokesman.

In this regard, the prosecution, which is currently probing
Samsung chairman Lee on tax evasion charges in connection
with his wealth transfers to Jae-yong, hinted that it will
launch a separate investigation into Samsung's bribery of
Minister Song. (Korea Herald  26-Aug-2000)

SAMSUNG MOTORS: Sale runs into last-minute obstacle
---------------------------------------------------
The sale of Samsung Motors to French automaker Renault has
incurred an eleventh hour roadblock as one of Samsung's
creditors has voiced opposition to debt-for-equity swaps
and other court-ordered workout plans.

The Housing and Commercial Bank (H&CB), holder of
approximately 3.4 billion won ($3.1 million) in collateral
bonds of Samsung Motors, filed an appeal against the order
of the Pusan District Court earlier this month ordering the
company to segregate its bond holdings and to convert
Samsung's debts into equities.

H&CB's objection claims that Samsung's collateral bond it
holds are public bonds, which cannot be written off. It
seeks a cancellation of the court order. Renault reacted to
the notice by threatening to cancel the takeover deal
unless the dispute is resolved immediately.

A Hanvit Bank official noted that unless Samsung's asset
transfer is complete by the end of September, the sales
contract can automatically become void. Closing of the sale
has been delay repeatedly since its original July 1
scheduled date.

SHINDONGAH FIRE & MARINE: FSC advocates its sale
------------------------------------------------
The Financial Supervisory Commission is advocating that
Korea Life Insurance Co. sell its non-life subsidiary,
Shindongah Fire & Marine Co. A FSC official contends that
the sale will boost Korea Life Insurance's financial
health, especially since the government is not in a
position to inject more public funds into the nationalized
life insurer.

Shindongah's sale price is seen as being at least 150
billion won if sold through an international auction,
according to industry watchers said. The tab Allianz of
Germany and AIG Group of the United States as prospective
buyers.

WOO BANG HOUSING & CONST.: Declare insolvent
--------------------------------------------
Woo Bang Housing & Construction Co Ltd was declared
insolvent by creditor banks after failing to repay 1.49
billion won in promissory notes that matured Aug. 28.

Major creditor Seoulbank confirmed the insolvency and said
that the company is expected to be placed in receivership
by a court. Woo Bang's total outstanding debt is estimated
at 1 trillion won.

Creditors are refusing to extend new loans, requiring the
builder to repay maturing debt from its own funds.
Meanwhile, Woo Bang shares closed down 315 won to 1,800.


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

DRB-HICOM: May sell 800M Ringgit in bonds to repay debt
-------------------------------------------------------
Malaysian automaker DRB-Hicom Bhd. is considering the sale
of 800 million ringgit ($211 million)in three-year bonds to
help repay debt.

The bond sale is being considered as an alternative to
selling its stake in Edaran Nasional Bhd., Malaysia's
biggest car distributor, talks over which are stalled
primarily due to price. The bond sale could help buy more
time for DRB-Hicom, which has been under pressure to sell
its 32 percent stake in Edaran.

DUALQUEST SDN: Part of merger rehab plan
EKOVEST DEVELOPMENT SDN: Part of merger rehab plan
MALAYSIAN GENERAL INVEST.CORP.: Part of merger rehab plan
PEMBINAAN SAHABATJAYA SDN: Part of merger rehab plan
TUNAS MELATI SDN: Part of merger rehab plan
---------------------------------------------------------
Malaysian General Investment Corp Bhd's (MGIC) new
restructuring scheme, which mainly involves the merger of
Pembinaan Sahabatjaya Sdn Bhd (PSSB), Dualquest Sdn Bhd,
Tunas Melati Sdn Bhd and Ekovest Development Sdn Bhd into
the company, is expected to provide the earnings stream
desired by the company.

MGIC said it has proposed to issue 125 million shares at
RM1.00 a piece and RM74 million nominal amount of zero
coupon ICULS B to pay for the purchase of the five million
PSSB shares for RM199 million. Consequently, the sellers of
the five million PSSB shares namely Naharuddin Nizam,
Mohamad Nor Hamid and Jamaliah Saad will collectively
own the 125 million shares in MGIC or 65.98 per cent of the
enlarged issued capital the company prior to the conversion
of Redeemable Convertible Secured Loan Stock (RCSLS) and
ICULS.

Naharuddin, Mohamad Nor and Jamaliah will be required to
extend an unconditional mandatory general offer for the
remaining MGIC shares not already owned by them and are
expected to apply to the Securities Commission (SC) for a
waiver, says MGIC in anouncement to the KLSE. The sellers
of the PSSB shares will later make an offer for sale of
MGIC shares to existing MGIC public shareholders and
employees of the restructured MGIC group and/or PSSB group
for RM1.00 each.

They also will offer to sell the ICULS B to employees of
the restructured MGIC group and/or PSSB group. MGIC has
also proposed to buy the entire stakes in Dualquest, Tunas
Melati and Ekovest Development for a total of RM67.67
million to be paid by the issue of zero coupon Irredeemable
Convertible Unsecured Loan Stocks (ICULS) B in MGIC to the
respective vendors.

The restructuring scheme will also involve among others a
capital reduction of 60 sen for every RM1.00 share, rights
issue of three-for-two, and a composite scheme of
arrangement.  The proposals will enable the scheme
companies to restructure and discharge the outstanding
liabilities and credit/trade facilities in an equitable and
orderly manner.

This will allow MGIC's scheme creditors to receive a
significantly higher return than they would otherwise
receive if the scheme companies were to be liquidated or
placed under receivership. In other words, the composite
scheme of arrangement proposes a better alternative for the
scheme companies and scheme creditors. (Business Times 25-
Aug-2000)


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

ALL ASIA CAPITAL: SEC says it violated STCP policies
----------------------------------------------------
After a series of hearings, the Securities and Exchange
Commission (SEC) is getting ready to penalize beleaguered
All AsiaCapital and Trust Corp. for violating the single
borrower's limit rule for investment houses as well as
certain provisions of the short-term commercial paper
(STCP) rules.

Moreover, the Commission en banc -- the highest decision-
making body of the SEC -- said the lifting of the cease-
and-desist order (CDO) issued against All AsiaCapital last
July 21, will be only be undertaken upon compliance of
several requirements, among them is the infusion of new
capital.  An earlier probe into All AsiaCapital showed that
the investment house violated provisions of the Bangko
Sentral's (central bank) implementing guidelines on the
"prescribed capital adequacy ratios for investment houses"
as prescribed under Presidential Decree 129.

Based on the SEC's audit, All AsiaCapital's receivables
from its affiliate, All Asia Trust Co.-Financing, exceeded
more than 25% of its net worth.  The Commission en banc,
following recommendations of the SEC's brokers and
exchanges department (BED), ordered All AsiaCapital to
submit an outline stating the measures to resolve its
liquidity problem.

The troubled investment house needs about 1 billion
Philippine pesos ($22.22 million at PhP45.013=$1) to pay
off investors and to remain solvent. Its assets are tied up
in real estate and long-term commercial papers. Sources
earlier said, shareholders of All AsiaCapital are willing
to infuse the much-needed equity into the company.

All AsiaCapital's shareholders include government-owned
Land Bank of the Philippines; International Finance Corp.,
Lombard Asian Private Investment Co.; Chemical Industries
of the Philippines; Manila Bay Group of Companies; Cagayan
Electric Power and Light Co; Alcantara and Sons, and Armed
Forces of the Philippines Retirement and Separation
Benefits System.

The investment house has been trying to generate fresh
funds from strategic investors for more than a year now,
but negotiations have been stuck on the issue of control,
sources said.

Meanwhile, the SEC said All AsiaCapital would first have to
settle the corresponding penalties for non-registration of
commercial papers and guarantee future compliance with the
STCP rules, before the CDO can be reversed. An earlier
audit report on All AsiaCapital pointed to the firm's
violation of the SBL rule of the Bangko Sentral.

BED documents showed that liabilities of the investment
firm's commercial paper issuers, Reynolds Philippine Corp.
and Mondragon International Philippines, was held for more
than 180 days and exceeded 5% of its net worth beyond the
normal applicable SBL.  Unless All AsiaCapital promises to
strictly observe the SBL rules and the proper accounting
procedures for each financial intermediary, "the CDO will
stay," the Commission agreed in a recent en banc meeting.

All AsiaCapital started facing liquidity problems when it
was hit with preterminations of placements or investments.
But while it remains solvent, the sources said it is having
difficulty meeting these preterminations. (Business World
28-Aug-2000)

ASB GROUP: Submits rehab plan
-----------------------------
The ASB Group of Companies has submitted a proposed
restructuring plan to the Securities and Exchange calling
for the sale of on-going projects and dacion en pago
(payment in kind) arrangements with secured creditors.

The proposed plan also provides that unsecured creditors
purchase real estate parcels and other assets with the
amount of their debts so as to create an offset with their
claims against the company.

Previously, the SEC granted relief to ASB Group from the
payment of approximately P12.7 billion in debts. Owned by
property developer Luke Roxas, ASB Group owes 712
individual creditors about P3.9 billion, various creditor
banks some P5.2 billion and the balance to other unsecured
creditors.

The company experienced liquidity problems after the
massive termination and non-renewal of investments.
The restructuring plan calls for placement in an asset pool
of the remaining assets after the proposed dacion en pago.
Those creditors will be given certificates of participation
in the pool.

ASB also is negotiating with parties for funding that would
be used to complete certain on-going projects. BSA Twin
Towers and Legaspi Place is to be completed from P1.33
billion in internally-generated cash. The funds would be
raised through the sale of its DBS shares for P350 million.
Sale of the Malayan Tower is expected to net proceeds of
P465 million, while collection of receivables should bring
in another P197 million. The planned sale of ASB's Caliraya
shares are worth P210 million, while proceeds from sale of
the Garden Heights joint venture are estimated at P106
million.

ASB estimated that the cost of completing the two towers
would be P1 billion, with potential revenues reaching about
P2.9 billion. The Garden Heights project is about 59
percent complete, while ASB Malayan tower is nearly 53
percent complete.

Prepared by ASB in cooperation with SGV& Co., the
rehabilitation plan states that the net combined assets of
the ASB group after adjustments totaled P13.78 billion,
while liabilities amounted to P12.7 billion.

PHILIPPINE NAT.BANK: Expects narrower loss this year
----------------------------------------------------
Fully-privatized Philippine National Bank (PNB) expects to
trim down its losses to 561 million Philippine pesos
($12.46 million at PhP45.013=$1) by the end of the year,
its projected statements of income showed.

From January to June this year, PNB's losses have run up to
PhP1.446 billion ($32.12 million). In 1999, the ailing bank
recorded a PhP9.874-billion ($219.35 million) loss.
PNB president Feliciano L. Miranda, Jr. earlier said the
bank may incur losses this year or at most breakeven after
the capital raising activity was delayed for several
months.

Mr. Miranda originally forecast a PhP100-million net income
for PNB on the assumption that new capital would be infused
last May.  PNB plans to raise PhP10.18 billion in fresh
capital during the stock rights offering, scheduled on
September 18 to 19. By the end of the year, the bank
forecasts a PhP32.069-billion capital level, more than
double the PhP13.398 billion level as of June 26.

In a disclosure to the Philippine Stock Exchange (PSE), PNB
said bulk of the proceeds or PhP8.8 billion will be used to
pay high cost obligations maturing in October. The
remaining PhP1.38 billion will be invested in fixed income
securities. For the rest of the year, PNB plans to focus on
loan collection and restructuring. The bank expects its
past due ratio to fall to 14% of total loans from the
current 35%. (Business World  28-Aug-2000)

PHIL. TELE.& TELE.: Expansion plans in spite of rehab
-----------------------------------------------------
Despite being in the midst of a P7 billion debt
restructuring exercise, Philippine Telephone & Telegraph
Corp. said it plans to offer broadband services for data
and Internet by year end.

Ma. Rosario Mu¤oz, PT&T assistant vice president for
marketing support and public relations, said yesterday that
about 61 percent of the company's creditors had approved
the preliminary terms of the debt restructuring. The
company will proceed with offering its new services
notwithstanding the outcome of the debt restructuring,
however, she added.

With its main source of revenue, telegrams, on the decline,
part of PT&T's restructuring includes the possible
conversion of its branches into stations where people can
access and use Internet services. The company will not
abandon its telegram services altogether, since there still
is a niche market primarily for its corporate customers,
noted Mu¤oz.

Additionally, company operations include linking ATM
(automatic teller machine) networks of some banks as well
as the Lotto network of the Philippine Charity Sweepstakes
Office nationwide. Regarding expansion of company's
broadband services, Mu¤oz said PT&T already had the basic
infrastructure that only needed a minor upgrade.

The company continues to negotiate with the remainder of
its creditors for restructuring its debts. PT&T sister
companies, Philippine Wireless Inc. and Capitol Wireless
Inc., also are in debt-restructure negotiations.
PWI has some P2 billion outstanding, while Capwire owes
about P650 million.

PRIME BANK: No bidders for branches
-----------------------------------
The Philippine Deposit Insurance Corp. (PDIC) has declared
a failed bidding for the auction of the 62 branches of
Prime Savings Bank (Prime Bank) after no single bank turned
up for the auction last Friday.

PDIC executive vice-president Ricardo M. Tan said banks did
not push through with their intention to bid for the
branches due to the high minimum price pegged per branch as
well as the clause that banks should bid for at least six
branches distributed throughout the country.

"Maybe they felt that the minimum threshold price was too
high but they did not tell us that when we had a briefing,"
Mr. Tan told BusinessWorld last Friday.  "Maybe they wanted
the option to choose," he said, referring to the clause
requiring banks to bid for six branches.

PDIC earlier set the minimum bidding price of 15 million
Philippine pesos ($.333 million at PhP45.013=$1) for
branches in Metro Manila, Davao and Cebu, and PhP10 million
($.222 million) 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.

Mr. Tan said with the failure to sell Prime Bank's
branches, PDIC will have to go back to square one and
discuss with the Bangko Sentral ng Pilipinas (BSP) (central
bank of the Philippines) whether the branches will be
auctioned again or sold through a negotiated sale.

"Now we have to go back to the drawing boards, sit down
again with BSP and determine what is the next best course
of action--either another bidding through legal terms or a
negotiated sale. We will have to analyze the feedback on
this," he said.

PDIC earlier expected a high turnout of bidders since the
BSP last year ordered a three-year moratorium on the
issuance of new licenses for bank branches. Aside from
this, BSP also sweetened the deal by allowing the winning
bidders to amortize the cost for a period of 10 years as
well as the chance to relocate the branches within its
general area.

Meanwhile, Prime Bank depositors who went to the PDIC to
observe the bidding said it would better for the state
insurer to opt for a negotiated sale to finally liquidate
the bank's assets and for the depositors to recover their
uninsured deposits still locked in the closed bank.

"Apparently, the intention of PDIC to sell 62 branches
failed ... So it will be done on a negotiated one. It would
be more practical, more efficient, a lot easier," Justo M.
Ortiz president of Prime Bank Depositors Association said.
"Probably (the price will be) a little lower because it
will be on a negotiated sale," he said, adding it is a
better option than always having a failed bidding.

The depositors lamented that PDIC was not giving sufficient
attention for the liquidation of Prime Bank's assets which
were placed under its receivership in January this year.

"The prices pegged in Metro Manila and even the provinces
were just too high. We were not the ones who pegged the
price, it was BSP and PDIC. They should know better than
us. We're very much frustrated. Our funds are still locked
in. We have many laborers out of jobs since we have closed
our shops," another depositor told BusinessWorld .

The depositors said an estimated PhP2.3 billion ($51.10
million) worth of uninsured deposits remain locked in the
bank since it declared a bank holiday in June last year.
Prior to the bank holiday, the thrift bank was having
difficulty beefing up its capital to meet the Bangko
Sentral's increased requirements.

"Its like the PDIC is not giving us the same amount of
attention as they are giving Urban Bank. Is it because we
have no (Carlos) Arellano or the Social Security System or
some big names in our depositor's list?," another depositor
said. (Business World  28-Aug-2000)


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

SOON HUA SENG: Lawsuit ahead if rehab deal not struck soon
----------------------------------------------------------
Bangkok Bank has insisted that it is ready to sue the Soon
Hua Seng group, an agribusiness giant, if restructuring
talks continue to drag on.

Chatri Sophonpanich, the bank's chairman, said a suit was
being prepared following numerous attempts to reach a
restructuring agreement. The bank last week was able to
reach a settlement with one of the group's companies, pulp
manufacturer Advanced Agro, he said.

Business prospects for Advanced Agro have improved in line
with the rise in global paper prices, but talks with other
companies in the group, which includes commodities exports,
food processing, property development and insurance, have
dragged on for more than two years.

Other creditors say they would be forced to file suit as
well to protect their own claims if Bangkok Bank took the
case to court. Soon Hua Seng says it has been earnest in
its efforts to reach a settlement with its creditors to
restructure the 26 billion baht outstanding.

"There has been steady progress throughout. We appointed
SCB Securities in May 1999 to advise on a plan and have
made steady efforts to reach a settlement with the banks,"
the company said in a statement to the Bangkok Post.
"The most recent restructuring plan was submitted to banks
to review in July ... overall, the group has been
restructuring and reducing its debt continuously since
1998."

Soon Hua Seng says 10 billion baht in loans has been
restructured, but insiders say talks have been complicated
by the stances of Mr Chatri and Kitti Damnernchanvanich,
head of Soon Hua Seng. Local banks have proposed that Mr
Kitti step down from the boards of several of the group's
companies, to be replaced by a representative of the
creditors.

On the other hand, Soon Hua Seng has proposed that
creditors accept a sharp cut in principal and outstanding
interest. Neither side has accepted the other's proposals.
A neutral adviser has been appointed to mediate, a party
commanding the respect of both Mr Chatri and Mr Kitti.

For Advance Agro, Bangkok Bank was able to reach a
settlement through payment of a 5,000-rai plot in Prachin
Buri, valued at two billion baht. Overall, Soon Hua Seng
has restructured debts for six companies, with talks
continuing on another 30 firms. What irks local banks most
is what they consider unfair treatment of creditors by the
group. (Bangkok Post  28-Aug-2000)

SUPALAI: Debt-to-equity swap completed
--------------------------------------
Supalai reports that 864,700 of its convertible debentures,
priced at Bt20.9 each, were converted to common shares of
the company. The Aug. 22 move was part of an effort to
restructure debt. Holders of the debentures that were
converted are National Finance (698,900) and Allied
Property Teamwork (165,800).


S U B S C R I P T I O N  I N F O R M A T I O N

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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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