TCRAP_Public/000918.MBX      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, September 18, 2000, Vol. 3, No. 181


* A U S T R A L I A *

ACCESS 1: Posts annual loss
ADULTSHOP.COM: Posts loss, hints at no dividends
CHAOSMUSIC: Posts annual loss
EHYOU.COM: Posts annual loss
HIH INSURANCE: Shareholder rail at Allianz deal
MTM ENTERTAINMENT TRUST: Posts $29M annual loss
SAUSAGE SOFTWARE: Posts $3.29M FY loss
TELSTRA 2: No deferral on Nov. repayment

* C H I N A  &  H O N G  K O N G *

18 NOMINEES LTD: Facing winding up petition
ARBROSS SHIP MGMT.CO.LTD: Facing winding up petition
HANGLY METAL BUTTON & BUCKLE: Facing winding up petiton
HUNG MEI MFG.CO.LTD: Facing winding up petition
IN GALLERY DESIGN LTD: Facing winding up petition
LONG CHIEF LIMITED: Facing winding up petition
MINGAR INVESTMENTS LTD: Facing winding up petition
SHANGHAI HAIXING: To be sold off after loan payment missed
SINICON DEVELOPMENT CO.LTD: Facing winding up petition
TOP SKY HOLDINGS: Facing winding up petition
VLINK GLOBAL LTD: Posts annual loss
YANG JIANG (HLDGS)CO.LTD.: Facing winding up petition

* I N D O N E S I A *

PT ANGKASA PURA: 10 of 13 airports it manages post losses
PT ASTRA OTOPARTS: $40M debt restructuring
PT MODERN PHOTO: Looks for restructure soon

* J A P A N *

HAZAMA CORP: Secures debt deal
NIPPON CREDIT BANK: Gov't okays $2.4B in aid

* K O R E A *

DAEWOO GROUP: FSC files charges against 20 execs
DAEWOO MOTOR: Ford Motor pulls out of purchase deal
HYUNDAI GROUP: Loses US$243.5M on Mt. Kumkang Project
KOREA HEAVY INDUSTRIES: Gov't to sell 24% stake

* M A L A Y S I A *

BERJUNTAI TIN DREDGING: Considers developing ex-mining land
KELANAMAS INDUSTRIES: Rescue plan with takeover by "Newco"
PERWAYA CO.: Missing money found in British Virgin Islands

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

ASB GROUP: Individual creditors reject rehab plan
NATIONAL STEEL CORP.: Receiver gives up; liquidation next
NATIONAL STEEL CORP.: Malaysia's owner may reconsider plan
URBAN BANK: Bancommerce eyes P2B in real estate asset sale

* T H A I L A N D *

EKAPAT FINANCE & SECS.: FRA to pay creditors
KRUNG THAI FIN.& SECS.: FRA to pay creditors
PACIFIC FIN.& SECS. CO.: FRA to pay creditors
ROYAL INT'L FIN.& SECS.: FRA to pay creditors
THANAMAS FINANCE CO.: FRA to pay creditors
THANASIN FINANCE CO.: FRA to pay creditors
THANASUB FIN.&SECS. CO.: FRA to pay creditors
THANTAWAN INDUSTRY: Ex-execs facing manipulation charges


ACCESS 1: Posts annual loss
Aspiring multimedia service provider Access 1 (ACC) posted
a loss of $9.42 million for the year. The loss included an
extraordinary expense of $5.888 million, incurred primarily
from divestment of old mining businesses -- Phoenix Mining,
Barkly Minerals and Camden -- and the development of the
Internet and multimedia business. Sales, meanwhile, grew
224 percent to $332,000.

ADULTSHOP.COM: Posts loss, hints at no dividends
Listed erotic retailer does not expect to pay
a dividend for at least the next year after posting a
$15.04 million net loss for the year ending June 30, 2000.

The result compares to a net loss of $1.494 million for the
previous corresponding period and includes an abnormal loss
of $7.783 million, attributed to a decrement in goodwill
carrying value.  Sales revenue for the six months to June
30, following its acquisition of Barbarellas and the launch
of its website for retail Internet sales, totalled $6.57

Adultshop's full year results coincided with the completion
of its acquisition of Australian adult product wholesalers
Calvista and Stell Bay.  Purchase consideration was
$625,000 in cash and the issue of shares to value of $2.38
million and three million options exercisable at $1.00 and
expiring June 30, 2004.

AdultShop said the acquisition, along with the recent
purchase of adult mail order and distribution company AXIS,
placed it in a strong position going forward.  It said it
planned to consolidate the four similar functions of AXIS,
Calvista and Stell Bay which should lead to cost reductions
and increased profitability.

Meanwhile, Adultshop will launch its German language
website in Europe today.  Managing director Malcolm Day
said the European expansion would be followed by the US and
UK website launches.

"These markets represent literally a world of opportunity
and revenue potential that will soon be realised,'' he
said. The company will embark on a multi-million-dollar
marketing campaign in Europe to build the brand, acquire
customers and produce sales. (Fairfax I.T. 15-Sept-2000)

CHAOSMUSIC: Posts annual loss
Music e-tailer ChaosMusic (CHS) recorded a loss of $6.1
million for the year. Revenues of $6.1 million were posted.

EHYOU.COM: Posts annual loss
---------------------------- (EHY) announced a net loss of $6.1 million on
sales of $113,000. The loss included an extraordinary
expense of $3.248 million, incurred through the acquisition
of Sprint Software.

HIH INSURANCE: Shareholder rail at Allianz deal
General insurer HIH Insurance plunged 29 percent to a
record low of 58c on Sept.14 as investors expressed their
anger over the company's earnings position and a deal with
Germany's Allianz, which would take a 51 percent stake in a
retail joint venture.  The share slide saw HIH chief
executive Ray Williams wade into the market for 1.05
million shares.

MTM ENTERTAINMENT TRUST: Posts $29M annual loss
Struggling MTM Entertainment Trust posted an operating loss
of $29.6 million for the year ended June 30, after slashing
the value of its investment portfolio.

It has been a turbulent year for the trust, which was
forced to renegotiate leases on most of its properties
after its main tenant, Cinema Plus, was placed into
administration. As a result, the trust has been forced to
write down the values of virtually all of its properties -
in some cases by almost half.

MTM Funds Management chief executive Mr Andrew Bennett said
yesterday the revaluations reflected new lease agreements
with US group Imax Corporation, which has replaced Cinema
Plus as operator of the trust's cinemas in Sydney,
Melbourne, Brisbane and Adelaide.

Rent will be paid in a tiered structure, which will allow
the trust to benefit in any upside in the theatres'
performance. However, revenue at the cinemas will have to
rise by about 35 per cent for MME to receive the rental
income it did from Cinema Plus.

Least affected by the new deal was the flagship Sydney
property at Darling Harbour, which was written down from
$26 million to $24 million.  But other properties were
savaged, with the value of MTM's Adelaide cinema
plunging from $15million to $8.25 million. The Brisbane
Imax was revalued at $10.5 million from $20 million.

The outcome was similar in Melbourne, with that property's
value sliding from $19 million to $10.5 million. As a
result, the trust has slashed its net asset backing from
$1.50 to $1.02.

"We believe there is upside from these revised valuations,"
Mr Bennett said. "Our view is we should be able to get back
to at least where they [Cinema Plus] were trading 12 months
ago and that makes a significant difference to the rents."

The challenge ahead for MTM is the trust's languishing unit
price, which closed 2› lower yesterday at 63› - well above
this year's low of 40› but still well beneath NTA. The
trust must also resolve a dispute in New Zealand which has
significantly affected its financial performance in the
past six months.

Mr Bennett said the final dividend had been reduced to just
2›, from 6.8› the previous year, as a result of the dispute
with the developer of its largest asset, the $NZ70 million
($53 million) Force Entertainment Centre in Auckland. Unit
holders will receive a full-year payout of 11›, down from
12.5›.  (Australian Financial Review 15-Sept-2000)

SAUSAGE SOFTWARE: Posts $3.29M FY loss
Australian Internet pioneer Sausage Software(SAS) posted a
$3.291 million loss for the year ended 30 June 2000, even
though revenues increased 580% to $57.757 million.

Sausage chairman Gil Hoskins attributed the loss in large
part to "the amortisation of goodwill arising on
acquisitions and income tax expense."  The $3.291 million
loss compares to a $1.56 million profit for the previous

The acquisition of SMS Consulting and the subsequent
amortization of goodwill impacted on Sausage's net profit,
according to Hoskins, while the failed merger with Solution
6 (SOH) tied up management resources. Moreover, where
Sausage was a 400 employee firm at the beginning of the 99-
00 financial year, it now employs over 1,100 people.

TELSTRA 2: No deferral on Nov. repayment
The Federal Government has no plans to defer the November
repayment date for the troubled Telstra 2 shares, Finance
Minister Fahey, said last night.

Mr Fahey, who is in charge of the float, said there was no
reason to look at putting off the payment.  "I haven't
considered it," he said. "The Government hasn't considered
it. We made it abundantly clear in the prospectus that
these were the conditions."

The Government has been under pressure to look at deferral
because of the low price of the shares and the fact that
many new small investors will face having to make a payment
on a diminishing asset. Mr Fahey said that while he
presumed that the Government had the legal power to defer a
payment, he had not checked this.  "I haven't asked. It
simply hasn't arisen."

He had "full faith" in the Telstra board and senior
management and said he could not discuss the share price.
"To talk about any concerns I might or might not have would
be the shareholder commenting on the price of the shares.
It is not for me to do that."

Delaying payment until early in the year could cost the
Commonwealth more than $100 million in additional debt
servicing. There is also no guarantee that the share price
will have recovered by then. Some experts argue that the
price is artificially depressed ahead of the payment and
will improve after it is made.

The unpopularity of telecommunications stocks continued to
weigh on Telstra shares yesterday, with the instalment
receipts closing at $3.05, near the day's low of $3.03, and
down by 11› on the day. Issued at $4.50, the instalment
receipts have lost nearly a third of their value. Original
holders are due to pay the balance of $2.90 in early

Telstra shares, meanwhile, shed 10› to close at $6.08,
trading at the lowest levels since October 1998. A
spokesman for the Australian Stock Exchange said that under
its rules it was impossible for Telstra or the Federal
Government to defer the second instalment payment.

"A timetable has been set, the second payment has to be
made," he said. "It can't be deferred because the share
price is lower."

A spokeswoman for the Australian Securities and Investment
Commission said the second payment was not a corporations
law issue, and was therefore not an issue for the
commission. (Sydney Morning Herald  15-Sept-2000)

C H I N A  &  H O N G  K O N G

18 NOMINEES LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 15 on the petition of
ABN Ambro Asia Limited for the winding up of 18 Nominees
Limited. A notice of legal apperance must be filed on or
before November 14.

ARBROSS SHIP MGMT.CO.LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 1 on the petition of
Peninsular Electronics Limited for the winding up of
Arbross Ship Management Company Limited. A notice of legal
apperance must be filed on or before October 31.

HANGLY METAL BUTTON & BUCKLE: Facing winding up petiton
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 8 on the petition of
Hung Tai Hai for the winding up of Hangly Metal Button &
Buckle Facotry Limited. A notice of legal apperance must be
filed on or before November 7.

HUNG MEI MFG.CO.LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 15 on the petition of
Lai Ying Kong for the winding up of Hung Mei Manufacturing
Company Limited. A notice of legal apperance must be filed
on or before November 14.

IN GALLERY DESIGN 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
Kwok Wai Hong for the winding up of In Gallery Design
Limited. A notice of legal appearance must be filed on or
before October 24.

LONG CHIEF LIMITED: 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
Union Bank of Hong Kong Limited for the winding up of Long
Chief Limited. A notice of legal appearance must be filed
on or before October 3.

MINGAR INVESTMENTS LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 22 on the petition of
Business Finance Limited for the winding up of Mingar
Investments Limited. A notice of legal appearance must be
filed on or before November 21.

Pacific Century CyberWorks shares yesterday plunged to
their lowest point this year as investors continued to sell
ahead of an expected placement by 20 per cent shareholder
Cable & Wireless (C&W).

The shares have fallen for six consecutive days, and as
part of a wider sell-off in telecommunications plays, they
have helped drag down the Hang Seng Index.  The blue-chip
index yesterday closed 234.35 points lower at 16,395.43.
CyberWorks shares dropped 5.73 per cent to HK$11.50 and
were the most heavily traded on the market, with a volume
of 131.98 million shares worth HK$1.54 billion.

The CyberWorks fall accounted for 61.8 points of the
index's drop.  Brokers said CyberWorks had fallen 20.9
percent in the past six days, and was believed to have cost
at least 300 points in the 1,200-point slump in the index.
By contrast, the index fell 6.9 per cent in the period.
Short sellers of CyberWorks dominated the market, with 48.8
per cent of the HK$325.4 million short-selling turnover
from the company.

Brokers said the incremental borrowing costs of CyberWorks
shares were now just 1 per cent per annum, as opposed to 40
per cent annualised interest a month ago.  "We are still
expecting a 10 to 15 per cent downside from here," said
Vincent Koo Wing-tat, chief investment officer for Polaris
Asset Management.

Rumours surfaced on Tuesday that C&W was testing the market
with an HK$11 billion CyberWorks placement at HK$11.30.
These were subsequently denied by CyberWorks.  No placement
talk was heard yesterday.   C&W plans to unload 4.9 per
cent of CyberWorks by mid-November and is free to sell
another 7.4 per cent before February 2001.

In a recent report, Dresdner Kleinwort Benson said the
reduction of stakes by major shareholders in early August
was negative news affecting the CyberWorks share price.
"We recommend investors to look at the stock only if prices
drop below HK$10," Dresdner said.

Other analysts are worried that Australia's Telstra will
demand a lower price tag for its 40 per cent stake in the
CyberWorks mobile arm CSL after SmarTone Communications
shares yesterday fell to a two-year low of HK$13.85.
Telstra is due to pay US$1.5 billion to CyberWorks in a
deal expected to be completed early next month.  Sources at
CyberWorks and Telstra maintain the consideration is not
likely to be changed.

To make things worse for the company, the news-driven
CyberWorks is in a one-month quiet period before its semi-
annual results are due to be announced on September 28.
"To a large extent, the company has its hands tied," said
Michael Leary, an Internet analyst at Lehman Brothers.

In a move to reverse the negative sentiment, CyberWorks
sources hinted the company was ready to announce a new
Internet-related mainland investment on September 29, just
after the black-out period ends. (South China Morning Post

SHANGHAI HAIXING: To be sold off after loan payment missed
Shanghai Haixing Paging Co will be the city's first paging
firm to be auctioned off after it failed to pay back loans
from a local investor.

The case is starting to ring alarm bells in the paging
business as analysts warn more firms could bite the dust if
they do not adapt. However, some operators believe the
business is down but not out. They hope to tap the large
rural market and develop new features for data and
interactive services.

A district-level court in Shanghai's Xuhui District forced
Haixing to be sold off over the weekend to repay Shang'er
Industry Co Ltd. The company, which was set up eight years
ago, claimed it had about 12,000 people using its paging

But analysts were gloomy about the auction. They believe
the company's assets are not an attractive buy. Up to now,
only one buyer has expressed an interest in the auction,
reported the local Laodong Daily.

"The golden time when beepers were sought after by everyone
has gone. They are not as useful as mobile phones," said
Wang Xiaguang, a local telecom market analyst.

Wearing a beeper was a symbol of affluence in the early
1990s. It also helped communication between businesses and
family members. However, mobile phones are now making
beepers redundant.  There are about 2 million mobile phone
users in Shanghai and that number is expected to grow to 3
million by the end of the year.There are 3.2 million beeper
users in the city and that figure is expected to drop in
the next few months.

Continuing cuts in beeper service fees, coupled with
cheaper costs for mobile phone users, has pushed many local
paging firms to the verge of bankruptcy. Many small firms
have already gone under. However, paging firms are fighting

"We are developing a two-way beeper and plan to add more
Internet-related features in the future which will allow
users to do such things as surf the Internet, check stock
tips and lifestyle news," said Wang Gang, an engineer at
Eastcom, a Hangzhou-based paging firm active in Shanghai.

Zhang Yue, a market researcher at Guomai Telecom,
Shanghai's largest paging firm, said the vast rural market
is still untapped.  "We can provide farmers with weather
forecasts, market tips and urgent calls," she said.

Some Shanghai residents seemed still interested in the
pagers. "Beepers are still very useful. I don't want to
switch on my mobile handset all the time. I use a beeper to
receive calls and then switch on my mobile to respond. It
is very cost effective," said Zeng Lin, a local engineer
working in a computer firm. (China Daily  15-Sept-2000)

SINICON DEVELOPMENT CO.LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on October 18 on the petition of Li
Kam Cheong Johnny for the winding up of Sinicon Development
Company Limited. A notice of legal appearance must be filed
on or before October 17.

TOP SKY HOLDINGS: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 8 on the petition of
Kincheng Banking Corporation for the winding up of Top Sky
Holdings Limited. A notice of legal appearance must be
filed on or before November 7.

VLINK GLOBAL LTD: Posts annual loss
Technology investment firm Vlink Global recorded a HK$59.82
million annual loss for the year ended April 30.

The loss was acutally down 11.08 percent from its loss
posted for the previous year. Turnover shrank 79.21
percent, as well, to HK$54M as the company reduced its
loss-making freight-forwarding operations.  Losses included
HK$19.53M from provisions for investments made before the
company changed its business.  The year's loss per share
was nine HK cents and directors did not strike a dividend.

YANG JIANG (HLDGS)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 Chu
Man Lan for the winding up of Yang Jiang (Holdings) Company
Limited. A notice of legal appearance must be filed on or
before October 3.


PT ANGKASA PURA: 10 of 13 airports it manages post losses
State-owned airport operator PT Angkasa Pura I, manager of
13 airports in the central and eastern parts of the
country, reports that only three of those airports were
profitable in 1999.

Angkasa Pura I President Gatot Pudjo Hartono said that the
Ngurah Rai International Airport in Bali, the Juanda
International Airport in Surabaya, East Java, and the
Hasanuddin International Airport in Ujung Pandang, South
Sulawesi, booked combined profits of Rp 200 billion ($23.5
million) in 1999.

The other 10 airports have been losing money since the
economic crisis hit the country in 1997, he said. Gatot
said the Sepinggan Airport in Balikpapan, East Kalimantan
was losing up to Rp 16 billion ($1.8 million) a year, while
the Selarapang Airport in Lombok, West Nusa Tenggara was
losing Rp 5 billion a year.

"The airports have lost large amounts of money each year
due to the drop in flights while the cost to maintain
operations remained high," he said.

Gatot cited the Pattimura International Airport in Ambon,
Maluku, which only serves three flights a day.  Six
airports, including Selarapang, Ahmad Yani Airport in
Semarang, Central Java, and Adisutjipto Airport in
Yogyakarta, managed to book profits before the crisis, but
the plunge in their revenues due to the decline in flights
since 1997 has put their balance sheets into the red.

Gatot said the airports in Semarang and Yogyakarta were
losing money because most of the people had turned to
cheaper means of transportation like buses and trains.
The government's intention to hand over the management of
the airport in Manado, North Sulawesi to PT Angkasa Pura I
in October this year would further undermine the company's
finances, he said.

"The airport's income is very small, and we will have to
pay for the costs of maintenance," Gatot said.

He said that despite the losses, Angkasa Pura I had no
plans to close any of the money losing airports. "Monies
from profitable airports will be allocated to those still
suffering losses under a cross subsidy program," Gatot
said. (Jakarta Post  15-Sept-2000)

PT ASTRA OTOPARTS: $40M debt restructuring
PT Astra Otoparts, an automotive component maker, confirms
that it has completed $40 million debt restructuring.

The restructuring agreement was signed at August 22 in
Singapore, and will be effective 30 days prior to it.
Per the agreement, the debt pay-back period will be
extended to July 31, 2005. Additionally, Astra Otoparts
will be released from paying loans for 18 months, payments
after that being rescheduled.

Interest will be paid every three months along with its 2
percent addition. The first installment is to be about $15
million, and is to be guaranteed with land, buildings and

PT MODERN PHOTO: Looks for restructure soon
PT Modern Photo, a distributor of photographic products and
equipment, is continuing to service its debts but is
looking to sign a debt restructuring agreement to be
reached next month.

This year repayment of principal debt is about US$ 4.25
million, the company reported. Modern Photo is predicting a
four percent increase in sales to Rp1.59 trillion (US$190
million) this year. The sales projection, however, is
likely to be affected by the rupiah's instability, as most
of its photographic equipment is made up of imported
products, MDRN Director AF Hasan recently told the Jakarta
Stock Exchange.


HAZAMA CORP: Secures debt deal
Troubled Japanese construction company Hazama Corp. is
reporting that it has received assurances from its banks
that they would offer it debt forgiveness worth about 105
billion (US$980 million).

The banks include Dai-Ichi Kangyo and Shinsei, the
nationalized bank formerly known as Long-Term Credit Bank,
which was sold to a consortium led by Ripplewood, the US
private equity group.  In exchange for the debt waivers,
Hazama has offered to restructure by 2005 and issue new

However, the restructuring is unlikely to lead to any rapid
reduction in its workforce, officials said.  Hazama employs
almost 4,000 staff, but plans to cut 500 jobs in the next
year and 700 by 2005. Reflecting a common Japanese
practice, about half of these will probably be transferred
to subsidiaries, meaning that there will be only 200 direct
job losses.

Hazama on Thursday stressed that it would sell assets, such
as golf clubs, as part of its restructuring. But, these
will force it to realise heavy losses on its real estate: a
group of subsidiaries linked to golf clubs has alone
incurred a loss of 30bn.  The plans are likely to
disappoint investors who have been hoping to see rapid
change in the construction sector, which is suffering from
excess capacity and severe financial problems.

Hazama's published debt was 139 times equity at the end of
March, although this figure excludes debts held in
subsidiaries - far higher than the level of debt usually
considered acceptable in western countries.  However,
construction companies have historically been closely
linked to the ruling Liberal Democratic party and have
received strong political support.

This had led banks to fear that cutting support to
construction companies could be politically difficult.
Such factors appear to be at work in another debt
forgiveness scheme that the banks are considering for
Kumagai Gumi, a troubled contractor whose debt stands at
about 80 times equity. Japanese reports on Thursday said
Sumitomo Bank, the main banker, had agreed to forgive all
the company's 250 billion debt, though Sumitomo has not
confirmed this.  (Financial Times 14-Sept-2000)

NIPPON CREDIT BANK: Gov't okays $2.4B in aid
The Japanese government intends to pump 260 billion yen
($2.4 billion) into the revived Nippon Credit Bank to help
shore up its capital base under new ownership.

The money is aimied to boost the bank's projected Sept. 30
capital adequacy ratio from 6.3 percent to 13.4 percent by
March, according to Financial Reconstruction Commission
(FRC) spokesman Masahiko Hasegawa. Banks operating
internationally need a ratio of at least 8.0 percent, he
noted.  The money also will be used to provide more
customer services.

The cash infusion is to come out of a taxpayers' fund,
originally worth 60 trillion yen, that the government set
up in October 1998 to bail out Japan's financially
struggling banks. NCB collapsed in December 1998 before it
could receive aid, going into temporary state ownership.
It submitted the 260-billion-yen request to the FRC last
week as part of a restructuring plan, which foresees NCB's
workforce being slashed by 166 to 1,600 by the end of March

NCB is to be renamed Aozora Bank on January 4 under the
presidency of Tadayo Honma, a former executive director of
the Bank of Japan.  To build stronger information-
technology systems, the bank aims to raise its investment
by 4.4 percent to 44.6 billion yen by March 2003.

If the efforts pay off, NCB expects to post a net profit of
31.4 billion yen in the year to March 2003, more than
double the 13.6 billion yen it is forecasting for this
fiscal year.  Its new owners include Japan's top Internet
investor Softbank, Tokio Marine and Fire Insurance and
leasing firm Orix.  (Business Day, AFP  15-Sept-2000)


DAEWOO GROUP: FSC files charges against 20 execs
The Financial Supervisory Commission (FSC) has decided to
file an official complaint with prosecutors against 20
staff members and executives of the Daewoo group, including
former group chair Kim Woo-choong.

The 20 individuals were all a part of the decision-making
chain leading to the falsification of accounting records in
1997 and 1998. The group includes most of the chairmen and
presidents of 12 Daewoo subsidiaries, including Daewoo
Corp., Daewoo Heavy Industries, Daewoo Motor and Daewoo
Electronics, who served at the group during the period in

FSC also plans to report details of alleged book-rigging by
another 20 staff and executives. Official complaints also
will be filed against four certified public accountants who
failed to properly audit Daewoo's financial statements, the
FSC revealed.

DAEWOO MOTOR: Ford Motor pulls out of purchase deal
Ford Motor Co. Friday announced it is pulling out of a $6.9
billion deal to buy South Korea's bankrupt Daewoo Motor Co.

"Ford Motor Company has decided not to make a final offer
for the acquisition of Daewoo Motor," W. Wayne Booker,
vice chairman of Ford, said in a statement.

The U.S. auto giant's surprise announcement ended the deal
that should have been completed by the end of this month,
casting doubt on South Korea's efforts to restructure its
debt-ridden industries.  Rattled by the news, South Korean
stocks, already down nearly 40 percent on the year, plunged
4.2 percent again Friday.

Ford was selected in June as the sole bidder for the
insolvent Daewoo Motor, beating out joints bids by General
Motors Corp. and Fiat SpA and by DaimlerChrysler and
Seoul's Hyundai Motor. Ford offered $6.9 billion for Daewoo
Motor and its affiliates, including the passenger car
division of sister company, Ssangyong Motor.

"We believe that a proposal was not possible that would be
in the interest of Daewoo and Ford and their respective
shareholders," Booker said.

Ford, the world's second largest automaker, had moved to
buy the motor vehicle arm of failed Daewoo Group as part of
efforts to boost its global competitiveness. With the
acquisition of Daewoo Motor, Ford could be in a position to
topple GM as the world's leading automaker. With an annual
production capacity of 2.1 million vehicles, Daewoo Motor
has 11 overseas plants in Poland, India and other

Daewoo Motor, once the country's second largest carmaker,
was saddled with an estimated $80 billion in debts compared
to its assets valued at around $112 million. Ford's
decision forced the committee for the sale of Daewoo to
select DaimlerChrysler or GM as a new partner for
negotiations, Seoul's top regulator said.

"Bidding proposals from contenders other than Ford remain
in effect," said Lee Keun-young, chairman of the Financial
Supervisory Commission Chairman, adding the deal with Ford
was surely broken not because of Daewoo's problems, but

The sale of troubled Daewoo Motor was part of South Korea's
plan to restructure the country's over-stretched auto
industry. In April, France's Renault SA took control of
ailing Samsung Motors Inc. The auction of Daewoo Motor was
a crucial part of the break-up of the Daewoo Group, once
the country's second largest conglomerate but collapsed
last year.  (United Press International  15-Sept-2000)

HYUNDAI GROUP: Loses US$243.5M on Mt. Kumkang Project
Hyundai Business Group recorded losses of US$243.5 million
from the Mt. Kumkang tour project from November 1998 when
the project was first launched to the end of 1999.

The losses were revealed in a report issued last Thursday
by the Budget Policy Bureau of the National Assembly
Secretariat. The report further showed that Hyundai spent
US$358 million for the project -- including a US$99.84-
million capital investment -- with only US$62.2 million in
income up to the end of last year.

KOREA HEAVY INDUSTRIES: Gov't to sell 24% stake
The Korean government will sell a 24 percent stake in
power-generation equipment manufacturer Korea Heavy
Industries & Construction Co. to local investors this week.

According to Seoul Economic Daily, the government will make
an initial public offering of 25 million shares at 5,000
won a share on Thursday, citing unidentified people at the
Ministry of Commerce, Industry and Energy. Additionally,
Korea Heavy expects to complete talks for an alliance with
Westinghouse Electric Co. and General Electric Co. before
the end of the month. The alliance reportedly will include
a $55 million convertible bond issue.


BERJUNTAI TIN DREDGING: Considers developing ex-mining land
Berjuntai Tin Dredging Bhd, struggling to find a way to
turn its loss-making performance around,is seriously
considering developing its ex-mining land.

Chairman Datuk Ab Sukor Shahar said the company's financial
restructuring exercise was nearing the end and hoped the
scheme would be finalized by the company's current fiscal
year end April 30, 2001.

Sukor told reporters after the company annual general
meeting this week that the firm is considering a number of
proposals, inclduing ones that involve other industries and
business activities.  He said the company was looking into
some form of joint venture with the state agencies
involving property development on land belonging to the

Sukor added that the development should satisfy the
requirements of both Berjuntai Tin and Malaysia Mining Corp
(MMC) (which owns a 28.64% stake).  Sukor declined to
comment on the shareholding status of MMC after the
restructuring process as it was still pending approvals
from various regulatory bodies.

In the company's latest annual report, he said the company
had received an advance from MMC amounting to RM16mil to
ensure Berjuntai Tin meet its current operation
obligations.  Sukor said proceeds from the sale of a dredge
for scrap for RM940,000 had been used to service the
interest of the advance provided by MMC.

For the fiscal year ended April 30, 2000, Berjuntai Tin
incurred a group loss of RM1.74mil and total accumulated
losses of RM42.64mil. (Star Online  15-Sept-2000)

KELANAMAS INDUSTRIES: Rescue plan with takeover by "Newco"
Kelanamas Industries Bhd has proposed a rescue plan with a
restructuring scheme that would see the transfer of its
listing status to a new holding company, "Newco."

The scheme involves capital and debt reconstruction,
disposal of shares in subsidiary and associate companies,
the acquisition of Dolomite Bhd and a rights issue.
Hwang-DBS Securities Bhd said in a statement on behalf of
Kelanamas that the scheme would result in a reverse
takeover of Kelanamas via Newco by the vendors of Dolomite
Bhd as they would emerge as the majority shareholders,
collectively holding 72.40% of the resultant enlarged
equity capital in Newco.

The proposed rescue cum restructuring scheme would result
in a change in the Kelanamas group's principal activities
from stockbroking, trading and distribution of consumer
products as well as property investment to Dolomite group's
core businesses, which focus on quarry operation and
production of building materials, construction and property

Kelanamas proposed to cancel its paid-up capital of
RM116.116mil as well as the entire balance in Kelanamas's
share premium account of RM139.48mil, which would result in
a credit reserve of RM255.646mil.  Of the amount,
RM5.808mil would be used to pay, in full, for 5.808 million
RM1 shares in Newco while the balance would be used to set
off the company's audited accumulated losses which stood at
RM413.697mil as at April 30, 1999.

In turn, Newco would issue new shares to Kelanamas
shareholders on the basis of one new Newco share for every
20 Kelanamas shares held prior to the capital reduction
exercise.  The proposed acquisition of 99.91% in Dolomite
Bhd would be satisfied through the issuance of 215.856
million RM1 Newco shares at par.

Following that, there would be a rights issue on the basis
of two Newco shares for one Newco share already held by
Kelanamas shareholders, to be issued at par.  Kelanamas
said the scheme also involved a debt reconstruction
involving RM295.083mil, of which RM104.331mil was for
secured creditors and RM190.752mil is owing to unsecured

The proposals are awaiting approvals from the Securities
Commission, Foreign Investment Committee, and the High
Court. Approvals are also pending from Kelanamas
shareholders at a court meeting and EGM to be convened,
Newco shareholders at an EGM to be convened and the KLSE.
(Star Online  15-Sept-2000)

PERWAYA CO.: Missing money found in British Virgin Islands
The Anti-Corruption Agency has reported that the failed
Perwaja company's missing US$1.7 billion has been found
with a company registered in a Caribbean tax haven.

ACA director Ahmad Zaki Husin was quoted as saying that
investigators were trying to identify who was for the
transfer of the money.  Perwaja, a project by prime
minister Mahathir Mohamad, recorded losses totaling
billions of ringgit.

AFP quoted Ahmad Zaki telling Wawasan Merdeka, another
paper owned by UMNO, that the ACA knew that the money was
taken out of Malaysia to Hong Kong then to Japan, then
deposited in an account in Switzerland. Finally, he said,
some RM6.4 billion was deposited in a foreign company
registered in the British Virgin Islands.

By 1996, Perwaja was reported to have accumulated losses
and liabilities totaling RM9.9 billion. Another RM800
million in losses was posted in the past four years.


ASB GROUP: Individual creditors reject rehab plan
Individual creditors of the ASB Group of Companies have
rejected the proposed rehabilitation plan for the ailing
corporations owned by real estate developer Luke Roxas,
saying the recovery program is vague.

In a statement issued yesterday, the individual creditors
headed by Kenneth Ty Jr. said the rehabilitation plan is
not "comprehensive and has not been independently

Ty said the plan lacks the material financial commitment
for the repayment of ASB's debts to creditors, pointing out
that the group's liabilities would remain outstanding even
after 10 years. Ty added the financial statements should
reflect the true condition of ASB in order for the com-
pany's creditors to know which course of action to take.

"We would like to see a plan with specific comments for
the payment of liabilities to all creditors," he said.

The individual creditors also objected to the proposed
creation of an asset pool, saying it is just "another
scheme to entice more the unsecured creditors to agree with
the rehabilitation plan for SEC's approval."

In addition, they said the assumption that the secured
creditors would agree to a dacion en pago at ASB's selling
price or valuation is highly questionable. "It does not all
face up to reality whereby the mortgage banks would most
likely demand a lower valuation of the assets for them
to agree to a dacion."

"ASB fails to realize that the banks are in a much better
negotiating position by the fact that they hold as
collateral a majority of the properties of ASB and
therefore have no option to foreclose on the collateral
properties to fully cover their loan exposures.," he

The creditors likewise said the rehabilitation plan
failed to consider the eventual likelihood that the asset
pool shall prove insufficient to redeem the creditors'
participation certificates at their full value with
interest.  They said the plan also assumed no further
liability by Roxas to the unsecured creditors in case of
its failure to redeem in full the creditors' participation

"Mr. Roxas should remain and continue to be personally
liable to ASB creditors until he has fully paid back the
monies owed to them with interest," the group said in the
statement."  (Manila Times  15-Sept-2000)

The Securities and Exchange Commission has softened its
stand on Corporate Investments Philippines Inc. allowing
the beleaguered firm to continue transacting with existing

The SEC's Brokers and Exchanges Department, which
oversees the operations of investment houses, has decided
to go slow on CIPI to help it augment its income. A cease-
and-desist order issued on Aug. 7 by the BED effectively
prevented CIPI from soliciting, issuing, and dealing with
securities including commercial papers until further orders
from the Commission. The CDO, in effect, covers only new

As of end-May this year, loans brokered by CIPI between
lenders and the issuers of debt instruments totaled P2.3
billion, of which 61 percent or P1.4 billion was past due.
Only 33 percent is current. As collecting agent for the
lenders and paying agent for the issuers, CIPI collects
from the issuers payments of principal and interest due
under the debt instruments issued.  It then remits the
collection to the lenders on whose behalf CIPI holds
such debt instruments.

CIPI also receives money placements from certain
individual and corporate funders. The company, on behalf of
its funders, lends money placements to certain corporate
borrowers in exchange for promissory notes or other debt
instruments.  The investment house derives income from
these transactions, particularly from spreads represented
by the difference between the interest, which the borrower
agrees to pay and the interest the lender agrees to receive
for this placement.

Also, the BED said the act of remitting payment due to
its clients would not constitute a violation of the SEC
order freezing all actions and claims against CIPI since
the directive referred only to the payment of its
liabilities outstanding as of the filing of the petition
for suspension of payments.

The CDO was issued by the SEC following the filing by
CIPI of its petition for suspension of debt payments
amounting to P867 million. Organized in November 1989, CIPI
said the failure of its corporate borrowers to settle
their obligations has hobbled its ability to service
its own obligations to lenders and meet its operating
capital requirements. Of these total loans receivable, 67
percent representing P281.32 million is past due. (Manila
Times  15-Sept-2000)

NATIONAL STEEL CORP.: Receiver gives up; liquidation next
The interim receiver safeguarding the assets of National
Steel Corp. (NSC) appears to have given up on the shuttered
steel giant after running out of options to keep the debt-
strapped company from going under.

The interim receiver committee, headed by former Petron
Corp. chairman Monico Jacob, informed the Securities and
Exchange Commission (SEC) Tuesday that it is left with no
choice but to recommend the liquidation of NSC after
Pengurusan Danaharta Nasional Berhad of Malaysia filed a
motion to submit an alternative plan for the steel firm
's rehabilitation.

Jacob said the plan cannot be implemented without the
cooperation of the Malaysian shareholders of NSC. The
interim receiver had also requested for an extension of the
debt moratorium, which expires tomorrow, to give it enough
time to prepare and submit a liquidation plan for
Philippines' biggest steel maker.

"Without the cooperation of everybody, it is difficult
to push through with the rehabilitation. We have to get
everybody involved. I think that it is very difficult for
any investor to come in not knowing who to talk to," Jacob
earlier said.

SEC executive director Gene Reyes yesterday said he sees no
reason why the Commission should turn down the NSC
receiver's request.  Danaharta, trustee of 2.02 billion
shares of Hottick Investments Ltd. in NSC, had objected to
the proposed rehabilitation plan drafted by the interim
receiver because the proposed recovery program allegedly
failed to address the concerns of all stakeholders of NSC
and appeared to favor the firm's domestic lenders.

The plan, Danaharta said, also failed to provide a concrete
proposal to attract investors or a white knight to infuse
the required capital.  The objection of Danaharta to the
proposed rehabilitation plan had dashed hopes for the
possible resumption of NSC's operations which had been
shut down since November last year.

SEC chair Lilia R. Bautista said the Commission might
be forced to order the liquidation of NSC's assets if
Danaharta objected or failed to come up with an alternative
to the rehabilitation plan drafted by the NSC interim
receiver. Bautista said the only way NSC could be saved is
if it finds a white knight by Sept. 16, the expiry date of
the order suspending all actions and claims against the
steel firm.

Among those who have earlier expressed interest in
investing in NSC include Ispat SA, Novolipetak Iron and
Steel Corp. of Russia, Duferco SA, and Grupo Jacinto. The
government, however, did not find the proposal acceptable
because they failed to ensure a long-term plan to ensure
the viability of NSC's operations. (Manila Times 15-Sept-

NATIONAL STEEL CORP.: Malaysia's owner may reconsider plan
Malaysian majority stockholders of National Steel Corp. may
submit a last-ditch reorganization plan for the debt-ridden
Philippines steelmaker even as receivers are drawing up a
liquidation plan, BusinessWorld newspaper reported, citing
unidentified persons.

Representatives of Hottick Investment Ltd. may ask the
Philippine Securities and Exchange Commission to consider
its proposal, even though its deadline for intervening in
the process expired on Sept. 7.  Hottick may be
resubmitting its earlier plan, rejected by receivers and
creditors, to lease the steel plant, closed since last
November, while a new owner is sought, the paper said.

Yesterday, the receiver asked the SEC for a two-week
extension of the deadline for submission of a liquidation
plan.  National Steel has debt of about 16.5 billion pesos
(360 million).  Separately, the search for an investor
became more problematical after a Philippines' inter-
departmental tariff committee ignored a petition from
National Steel receivers to raise steel tariffs after no
action was taken on alleged dumping by Russian steelmakers.
(Bloomberg  15-Sept-2000)

URBAN BANK: Bancommerce eyes P2B in real estate asset sale
The Bank of Commerce plans to sell a substantial portion of
Urban Banking Corp.'s real estate assets to partly fund the
proposed rehabilitation plan of Urban Bank, Bancommerce
president Raul de Mesa yesterday.

De Mesa said they intend to dispose of major real estate
properties of Urban to raise needed fund for the rehab
program of the defunct bank which is expected to start by
early December this year.  The Monetary Board, the policy
making body of the Bangko Sentral ng Pilipinas (BSP), has
already approved the rehab program of Bancommerce for
Urban Bank.

Among Urbank's properties are the 36-floor Urban Bank Plaza
in Makati, Fort Capital Building in Fort Bonifacio, a 33-
hectare land in Taguig, Rizal and a one-hectare property in
Roxas Boulevard.  De Mesa said they expect about P2 billion
to be generated for the sale of these properties, but said
a new valuation process would be conducted to determine if
the present prices of the properties. He said that from the
Capital Building alone, they expect to generate about P650

Upon the projected reopening of Urban Bank, the new owners
will infuse more than P1 billion in fresh capital into the
bank.  The bulk of the new capital amounting to P600
million will come from the Social Security System (SSS),
about P300 million will be infused by Bancommerce and about
P500 million is expected from loan collections.

In the first 30 days after the reopening, De Mesa said they
expect another P2 billion more from the sale of the assets.
So far, he said the bank has liquid assets amounting to P3
billion. Thus, upon its reopening, Urban Bank will have P5
billion liquid assets.  Aside from Urban Bank, Bancommerce
has also acquired Pan Asia Banking Corp. and Traders Royal

With the four-way merger, Bancommerce, as the surviving
entity, will have resources of P45 billion from its present
P15 billion and a client base of 200,000 from 45,000 at
present. (Philippine Star  15-Sept-2000)


EKAPAT FINANCE & SECS.: FRA to pay creditors
KRUNG THAI FIN.& SECS.: FRA to pay creditors
PACIFIC FIN.& SECS. CO.: FRA to pay creditors
ROYAL INT'L FIN.& SECS.: FRA to pay creditors
THANAMAS FINANCE CO.: FRA to pay creditors
THANASIN FINANCE CO.: FRA to pay creditors
THANASUB FIN.&SECS. CO.: FRA to pay creditors
Financial Restructuring Authority chairman Kamol Chantima
confirms that the FRA will repay some 9.9 billion baht to
creditors of eight closed finance companies.

The eight finance companies are Royal International Finance
and Securities Co Ltd, Muangthong Trust Finance and
Securities Co Ltd, Ekapat Finance and Securities Plc, Krung
Thai Finance and Securities Plc, Thanasin Finance Co Ltd,
Thanamas Finance Co Ltd, Thanasub Finance and Securities Co
Ltd, and Pacific Finance and Securities Co Ltd.

The eight are the first group, out of a total of 56 finance
companies, for which repayments to creditors are due, Kamol
said. The total debt of these eight companies is 43.99
billion baht, of which 41.75 billion or 95 percent is owed
to the Financial Institutions Development Fund (FIDF).
About 9.99 billion baht will be repaid in the form of
promissory notes and cash, he added.  FRA will call a
series of meetings with creditors of the eight finance
companies between Oct 30-Nov 7.

THANTAWAN INDUSTRY: Ex-execs facing manipulation charges
The Securities and Exchange Commission yesterday accused
two former executives and seven other parties of price
manipulation of shares of Thantawan Industry.

Criminal charges were filed by the SEC with the Economic
Crime Investigation Division. If police investigators find
enough evidence, the case will be sent for prosecution.
Among those facing charges is Nam Mahitirat, former
chairman of Thantawan Industry.

Mr Nam, chairman of Sun Flower Co, had spearheaded the 18-
billion-baht Sun Estate development project, which
ultimately collapsed amid bribery allegations. Sun Estate
lost its development contract in May after failing to meet
concession payments. Nibhat Bhukkanasut, who as treasury
director-general had approved the concession, was
ultimately dismissed from the civil service on charges of
receiving bribes from Mr Nam.

The SEC accused Mr Nam, Taweewat Yinasawan, former
Thantawan president, Ma Wan Kuang, Chou Chih Hsiang, Yang
Lai Fu, Zhou Zi Lan, Zhou Zi, Xia Ailin and Keerati Sae Foo
of manipulating share prices from January 1995 to March
1995.  The nine people traded shares among themselves,
submitted orders before the formal market opening to sway
prices and used trading methods aimed at manipulating share
prices, the SEC said.

On Jan 24, 1995, shares of Thantawan traded on the Stock
Exchange of Thailand at 73 baht each, but closed on March
28 of the same year at 130 baht.  Average daily trade
during the period stood at 130,987 shares, compared with
the previous volume of 70,746 shares per day. The SEC said
there was no material change or new developments supporting
the increase in share prices or turnover.  If found guilty,
maximum penalties which can be imposed are two years' jail
and/or fines of equal to twice the benefits received, with
a minimum fine of 500,000 baht.

Mr Nam, along with two other companies, Fortune Trend Inc
and Spaceview Enterprise Co, were also accused of breaching
disclosure regulations on shareholdings. The SEC said Mr
Nam and the two firms used multiple trading accounts
registered in other names to accumulate shares of Thantawan
Industry.  The three parties eventually accumulated more
than a 5% stake in Thantawan, but failed to report their
holdings on the next business day as required by market

If found guilty of the second set of charges, penalties
range up to two years' jail and/or fines of 500,000 baht,
as well as fines equal to 10,000 baht per day for every day
in violation.  Mr Nam and the other accused parties were
unavailable for comment.

Shares of Thantawan closed on the SET at 14.75 baht
yesterday, down 25 satang, in turnover of 0.14 million
baht. (Bangkok Post  15-Sept-2000)

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

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

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