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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

             Friday, September 29, 2000, Vol. 3, No. 190

                                     Headlines


* A U S T R A L I A *

EISA: Creditors likely to approve $13M Austar bid
NOMURA INT'L: Reprimand for attempted Aussie manipulation


* C H I N A  &  H O N G  K O N G *

CHUN TAI HOLDINGS: Posts HK$161.9M annual net loss
KECK SENG INVESTMENTS: Posts HK$3.7M 1H loss
PCL ENTERPRISE: Posts HK$1.39M 1H net loss
ROCKAPETTA HOLDINGS: Records HK$9.38M 1H net loss
TSE SUI LUEN JEWELLERY: Chairman gets bankruptcy order


* I N D O N E S I A *

PT BANK OF BALI: Consortium plans to buy IBRA's stake
PT INDOCEMENT TUNGGAL: Stake sale okay urged for debt deal
PT PANCA OVERSEAS FINANCE: Seeks debt reduction,reschedule


* J A P A N *

FUJII & CO: Requests rehabilitation
HIKARI TSUSHIN: President denying reports of insolvency
HITACHI MEDICAL CORP.: Warns of 1H group net loss
NIGATA CHUO BANK: Administrators to sell it to 4 banks
ORIENT CORP.: President denies negative net worth report
SNOW BRAND MILK PRODUCTS: Forecasting huge losses


* K O R E A *

DAEWOO MOTOR: Ford withdrawal holds up paychecks
HANVIT BANK: In US$400M debt-refinancing deal


* M A L A Y S I A *

RASHID HUSSAIN BHD: Shares fall in reaction to revamp
RHB CAPITAL: Shares fall in reaction to revamp


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

A.T.De CASTRO SECURITIES: Among 71 brokers SEC penalizes
CAPITOL WIRELESS INC.: Creditors OK restructuring
JADE BANK: Central bank files more fraud suits vs. execs
LARRGO SECURITIES: Among 71 brokers SEC penalizes
MANDARIN SECURITIES: Among 71 brokers SEC penalizes
PCCI SECURITIES: Among 71 brokers SEC penalizes
PNB SECURITIES: Among 71 brokers SEC penalizes
SECURITIES 2000: Among 71 brokers SEC penalizes
WEALTH SECURITIES: Among 71 brokers SEC penalizes


* T H A I L A N D *

NATIONAL HOUSING AUTHORITY: To restructure debt, sell units
NATURAL PARK: Filing extension sought for rehab plan
OCEAN GLASS PLC: Settles debt with FIDF
THANAMASS FINANCE: Placed in receivership


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

EISA: Creditors likely to approve $13M Austar bid
-------------------------------------------------
Austar's $13 million offer for eisa is expected to be
approved by creditors of the ailing Internet service
provider.

eisa's major creditors Telstra, Cable & Wireless Optus,
Primus Telecom, KPMG and Dutch satellite operator New Skies
formed a committee yesterday after an initial meeting with
the ISP's administrator, Ferrier Hodgson.  The five
companies, which are owed about 90 per cent of eisa's $6.6
million debt, will meet again today.

In the meantime, Austar is supplying cash to keep the
business afloat and telecommunications providers have
agreed to continue supplying data services.  An Austar
management team is also working with eisa.  Ferrier partner
Andrew Love said he was confident the deal would be
accepted.

"The alternative would inevitably result, in my view, in a
receivership," he said. "There are no other offers."

eisa's 80,000 subscribers were now worth much less than the
$800 to $1000 each they were valued at before the April
tech stock correction, Mr Love said.

"The reality of where the e-commerce/dot-com market finds
itself is that people aren't prepared to pay those numbers
now because a lot has changed."

Austar originally offered $24.4 million to eisa
shareholders - about 20 cents a share - after eisa
collapsed following a failed $325 million bid for
OzEmail.  However, shareholders did not respond in time and
will now receive nothing. Under Austar's revised offer,
creditors would receive a 45 to 60 per cent return, Mr Love
said yesterday.

Austar spokesman Bruce Meagher said yesterday: "We expect
to be able to turn eisa around to cashflow positive." He
declined to say how much Austar was spending keeping eisa
afloat, but said it was "not a lot of money in the scheme
of things."

eisa had about $500,000 in cash when Ferrier was appointed
last Thursday and was burning $500,000 to $600,000 per
month, Mr Love said.  Earlier this year, eisa had been
spending about $2 million a month in preparation for its
OzEmail takeover.

Ferrier was investigating whether eisa had been trading
insolvently, Mr Love said.  The administrator is also in
settlement discussions with lawyers acting for eisa's
former chief executive, Damien Brady. (The Age  28-Sept-
2000)

NOMURA INT'L: Reprimand for attempted Aussie manipulation
---------------------------------------------------------
Nomura International and two of its top London-based
traders were given hefty fines and severe reprimands from
the British financial watchdog on Tuesday, after it found
they acted to manipulate the Australian stock market index.

The European arm of Japan's Nomura Securities was ordered
to pay a fine of œ350,000 (S$892,500), plus a contribution
to the Securities and Futures Authority's (SFA) costs of
œ122,944. Mr Robert Mapstone, former co-head of the firm's
equity division, was barred from the register of directors
and representatives, and ordered to pay œ60,000 towards the
SFA's costs.

Mr Gary Channon, who was head of equity derivative trading,
was fined œ60,000 and ordered to contribute to the SFA's
costs of œ20,000.  The reprimands and fines related to
Nomura's attempt to unwind a œ435 million position in
Australian equities and futures using a strategy of bidding
for its own stock at a big discount.  (Reuters, Straits
Times  28-Sept-2000)


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

CHUN TAI HOLDINGS: Posts HK$161.9M annual net loss
--------------------------------------------------
Chun Tai Holdings Ltd., maker of consumer electronics and
toys, recorded a HK$161.9 million net loss for the year
ended March 31, down from HK$683.5 million for the year
earlier. Loss per share was 36.9 HK cents this past year
versus 159.36 HK cents for the previous year.  Revenue fell
72 percent to HK$159.5 million during the period. No final
dividend will be distributed.

KECK SENG INVESTMENTS: Posts HK$3.7M 1H loss
--------------------------------------------
Property developer Keck Seng Investments (H.K.) posted a
net loss of HK$3.7 million for the six-month period ended
June 30. By comparison, the firm recorded a HK$41.4 million
net profit for the same period a year earlier. Loss per
share was 1.1 HK cents against earnings of 17.9 HK cents
the previous year.  Revenue fell 82 percent to HK$51
million, and no interim dividend will be distributed.

PCL ENTERPRISE: Posts HK$1.39M 1H net loss
------------------------------------------
PCL Enterprises Holdings Ltd., a semiconductor product
trading company, recorded a HK$1.39 million net loss for
the six-month period ended June 30. By comparison, the
company had a wider net loss of HK$9.47 million for the
same period the year prior. Loss per share was 0.4 HK cent
compared this first half compared to 2.8 HK cents the first
semester last year.  Revenue rose 31 percent to HK$49.56
million, but no interim dividend will be distributed.

ROCKAPETTA HOLDINGS: Records HK$9.38M 1H net loss
-------------------------------------------------
Rockapetta Holdings Ltd. recorded a HK$9.38 million net
loss for the six-month period ended June 30, half its net
loss of HK$19.96 million for the same period a year
earlier. Loss per share the first half this year was 2.85
HK cents compared with 6.88 HK cents the prior year period.
Revenue fell 16 percent to HK$51.5 million and no interim
dividend was proposed.

TSE SUI LUEN JEWELLERY: Chairman gets bankruptcy order
------------------------------------------------------
Tse Sui Luen Jewellery (International) Ltd reported that
its chairman Tse Sui Luen received a bankruptcy order from
the High Court initiated by Suez Asia Holdings Pte Ltd.
The chairman will appeal to the court against the
bankruptcy order. According to the company, the case will
have no material financial impact on the company.


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

PT BANK OF BALI: Consortium plans to buy IBRA's stake
-----------------------------------------------------
A consortium of local investors or institutions plans to
buy the Indonesian Bank Restructuring Agency (IBRA)'s stake
in Bank Bali by injecting one trillion rupiah (S$197
million) when the bank launches its rights issue in
early October, Bisnis Indonesia reported, citing a bank
source.

The source said the potential consortium which is prepared
to buy IBRA's stake is a new investor and not from among
the founding shareholders who want to exercise their rights
when the bank launches its rights issue. Earlier, IBRA said
the bank's total recapitalisation cost would be 5.3
trillion rupiah. The bank's recapitalization programme has
been approved by the lower house of parliament.  IBRA is
expected to act as a standby buyer for the rights issue.
(Business Times  28-Sept-2000)

PT INDOCEMENT TUNGGAL: Stake sale okay urged for debt deal
----------------------------------------------------------
The Salim family is lobbying IBRA and the Finance Ministry
to approve Heildelberger Zement's plan to buy PT Indocement
Tunggal Prakarsa Tbk stake in its bid to meet payment of
Polymax convertible bond of US$400 million due in 2001 as
well as to avoid share dilution of 23.3% of Salim family's
share.

A Bisnis source revealed that Anthony Salim has set aside
around 20% of Indocement's (INTP) share - from his 43.3%
share in INTP at PT Mekarsari Perkasa - for the US$400
million convertible bond issued by Polymax, which
will due in 2006.  He further added that the convertible
bond-holders have the right to put option on their bonds in
February 2001.

"And if Anthony fails to meet his payment obligation, he
would lose control of his share," he said.

Meanwhile, in order to meet the obligation next year, the
Salims have to prepare US$500.2 million. That's why the
Salims are trying very hard to succeed the debt
restructuring effort process, said the source.  When Bisnis
asked for confirmation last night, INTP's corporate
secretary Ria Sjahroni Sereh denied that any form of
lobbies are taking place.

"No, there is no such thing," she said. She also refused to
answer questions regarding the Polymax convertible bonds.
"I am not in the capacity to answer."

Based on Bloomberg's data, the Polymax convertible bond was
issued under two series, each worth US$200 million, put
option rights due on 27 February 2001.  Based on the put
option, the bond holders have three alternatives. First,
they can return the bond and therefore Polymax has to pay
US$500.2 million.

Second, swap it with INTP shares, which will cut Salim's
share at INTP by 23.3%. Third, bond holders retain the
bonds.  With the current low value of INTP share of only
around Rp1,475, bondholders are likely to return the bonds
next year.  If this scenario materializes, the Salim family
would need around US$500.2 million fund to meet its
obligation, said the source.

"Even if they sell all Salim's 43.3% share in Indocement,
it is still not enough to pay its obligation. Because with
only Rp1,475 per share, they will only be able to raise
Rp765 billion."

And that's why the Salim family is trying very hard to seek
IBRA's and the Finance Ministry's approval on Germany-based
Heilderberger Zement's plan to join in the company.
"Because they badly need fresh funds from Heilderbeger to
pay the bonds."

Meanwhile, if the acquisition plan is not carried out
through transparent tender offer process, it would only
create losses on the government's part as well as to the
minority shareholders as they might not get optimum selling
prices from selling their shares. "Especially with rumors
saying that Heilderberger will bid for the government's
shares for only Rp1,500."

The government currently controls around 42.73% of INTP
shares. The shares were registered under the ownerships of
the Capital Investment and State Enterprises Ministry
25.73%, while the remaining 17% under IBRA, in which 13%
came from the Salim family and 4.42% from Sudwikatmono.
The source added that IBRA and the Finance Ministry have
not yet given approval to Heilderberger's acquisition plan.

That's why Indocement's extraordinary shareholders meeting,
which was scheduled yesterday is delayed until Friday.
"Because they are still lobbying IBRA and the Finance
Ministry to approve the proposal on Heilderberger's
acquisition plan." (Bisnis Indonesia  28-Sept-2000)

PT PANCA OVERSEAS FINANCE: Seeks debt reduction,reschedule
----------------------------------------------------------
PT Panca Overseas Finance has requested a debt reduction
and a rescheduling of its debt repayments over 10 years in
an effort to reach an out of court settlement with its
creditors, company president Anton Budidjaja said.

Panca Overseas has been sued in the bankruptcy court by
World Bank unit International Finance Corp (IFC).
Budidjaja said the company has outstanding debts of US$58.9
million, including a debt of US$12.9 million to IFC.  As of
August 31, IFC was a Panca Overseas shareholder with a 6.06
pct stake.

Budidjaja said that of the total debt, Panca Overseas
proposes repaying US$25 million of which $10 million would
be paid in cash with repayment of the remaining $15 million
rescheduled over ten years.


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

FUJII & CO: Requests rehabilitation
-----------------------------------
Osaka-based textile trader Fujii & Co. has applied for
court-led rehabilitation, reporting total liabilities of
some 10.8 billion yen as of the end of August.

The application, filed Sunday with the Osaka District
Court, has been accepted, the company said. The company was
formed in 1919 and specializes in hand-knit woolen yarns,
synthetic yarns and knit goods. Sales have fallen since
1992, the company posting a 600 million yen pretax loss for
the fiscal year ended March 31, its third consecutive
annual loss.

The company is listed on the first section of the Tokyo
Stock Exchange and the Osaka Securities Exchange, each of
which suspended trading in Fujii shares for the day and put
the company on a special list for later delisting.  Fujii
applied for court protection under amendments to the
bankruptcy law that went into effect in April that allow
troubled firms to carry out rehabilitation more easily and
faster.

HIKARI TSUSHIN: President denying reports of insolvency
-------------------------------------------------------
The president of Hikari Tsushin Inc., Yasumitsu Shigeta, is
denying media reports that the Japanese mobile phone
distributor is insolvent.  The president points to some 40
billion yen ($372 million) in cash Hikari has as proof the
company is able to fund its businesses and repay loans.

Hikari mobile phone sales have dropped almost 66 percent
from its peak in February, however, and its shares have
fallen to 4,200-4,250. That is 98 percent lower than the
stock's peak price of 241,000 yen on February 15. The
shares' free fall was in large part due to investors
questioning the company's ability to earn a profit after
reporting lower-than-expected earnings in March.

HITACHI MEDICAL CORP.: Warns of 1H group net loss
-------------------------------------------------
Hitachi Medical Corp. is projecting the recording of a
consolidated net loss of 620 million yen for the half-year
through Sept. 30, a huge turnaround from earlier
projections of a 330 million yen profit.

The company's sales of magnetic resonance imaging systems
in the U.S. are strong, but domestic sales of tomography
and diagnostic ultrasonic systems have been weak due to
cuts in spending by medical institutions. Group sales are
expected to reach 49.25 billion yen, nearly 6 billion yen
short of original projections.

For the full year through March 2001, Hitachi Medical is
projecting a 2 percent drop in group sales to 107.55
billion yen, but expects its operating profit to rise
4 percent to 4.4 billion yen on the good performance of a
U.S. subsidiary.

NIGATA CHUO BANK: Administrators to sell it to 4 banks
------------------------------------------------------
State-appointed administrators for failed Niigata Chuo Bank
have plans to divide up and sell its assets and
liabilities. According to industry sources, the
government's Financial Reconstruction Commission (FRC) soon
will convene a meeting to determine whether to approve the
proposed selection of four provincial banks -- two regional
and two second-tier regional banks.

ORIENT CORP.: President denies negative net worth report
--------------------------------------------------------
The president of consumer credit company Orient Corp. is
denying a published report that his company's financial
condition is questionable and that it is practically in a
position of negative net worth.

The report was published Monday in the weekly business
magazine Toyo Keizai. It claimed claimed that an internal
audit by DKB found Orient's liabilities exceeded its assets
by 438.5 billion yen as of the end of fiscal 1999.

At a press conference at the Tokyo Stock Exchange,
President Hisashi Kanai confirmed the company underwent an
audit by an independent auditing firm and added that "DKB
has assured me that if Orient's unrealized gains are taken
into account, group  shareholders' equity at the end of
last business year totaled some 90 billion yen and that
even taking into account the possibility of a deterioration
in asset values, the company was still above water," he
said. "We are getting full financial support (from main
lender Dai-Ichi Kangyo Bank)."

As of March 31, Orient held 260 billion yen worth of real
estate for investment purposes, which Kanai said it had no
plans to sell. Additionally, they were yielding rental
revenue of 2 percent a year.

In a warning to would be publishers of such misstatements
in the future, Kanai stated that if a private DKB audit had
indeed been leaked to reporters, Orient might take legal
action against the parties responsible. Meanwhile, Orient's
stock declined by the limit Monday, stayed ask-only Tuesday
and closed 56 yen lower on Wednesday.

SNOW BRAND MILK PRODUCTS: Forecasting huge losses
-------------------------------------------------
Snow Brand Milk Products Co. is forecasting huge pretax and
net losses for this year ending March 31, 2001, reflecting
the effects of widespread food-poisoning incidents
involving its products.

Snow Brand now estimates a group net loss of 47.5 billion
yen ($440.9 million), a pretax loss of 53.8 billion yen and
sales of 1.155 trillion yen. These figures compare with a
group net profit of nine billion yen and pretax profit of
23 billion yen on sales of 1.32 trillion yen previously
foreseen.

Mass food-poisoning incidents in Japan from Snow Brand
Milk's products caused more than 14,000 people to fall ill
earlier this year. In addition to a steep falloff in sales
in the wake of the food poisoning and a temporary
suspension of operations at its plants, the company said it
will suffer expenses totaling 29 billion yen for this
fiscal year from the disposal of recalled products and
compensation paid to patients and retailing affiliates.

At the same time, Snow Brand put together steps to
restructure itself, aimed at turning into the black for the
year ending March 2003. The steps include a reduction in
the work force by about 1,300 to 5,500 by March 2003. It
will also adopt cuts in salaries of its board directors by
30%.

Snow Brand said it now estimates a consolidated net loss of
32.1 billion yen, pretax loss of 28.6 billion yen and sales
of 594.6 billion yen for the half ending Sept. 30.  On a
parent-only basis, Snow Brand estimates a net loss of 44.3
billion yen and pretax loss of 49.5 billion yen with sales
of 378.2 billion yen.

The company said the parent sales for the fiscal year would
fall from the previous year in all categories. Parent sales
coming from milk products would fall 37% to 170.2 billion
yen for this fiscal year.  For the last year ended March,
Snow Brand posted a group net loss of 28.54 billion yen and
pretax profit of 21.80 billion yen on sales of 1.288
trillion yen.

In addition to measures including improving product quality
control to restore credibility in the brand's tainted
image, the company will take various steps to improve
profitability. As part of a reorganization of its domestic
milk plants, Snow Brand will shut down its plant in Osaka,
which produced products causing the massive food poisoning
incident.

The mass food poisoning was initially blamed on the low-fat
milk production line at Snow Brand's Osaka plant. But
authorities later found that the Osaka plant used
contaminated skim milk made at the Taiki plant in Hokkaido,
northern Japan.  It will also liquidate unprofitable group
companies and reorganize overseas operations. By taking
these measures, Snow Brand aims for a parent pretax profit
of eight billion yen and net profit of 1.5 billion yen on
sales of 510 billion yen for the year ending March 2003.

Separately, Snow Brand said it will tie up with Nestle
Japan Ltd. in the dairy food business. They will study
"various possibilities" for tie-up areas such as joint
sales, licensing and joint ventures. (The Asian Wall Street
Journal  27-Sept-2000)


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

DAEWOO MOTOR: Ford withdrawal holds up paychecks
------------------------------------------------
More than 700 employees of the Daewoo Technical Centre at
Worthing, West Sussex, have yet to receive their monthly
salaries following US carmaker Ford's withdrawal from a
$6.9bn (œ4.72bn) takeover of the insolvent Korean carmaker.

In Seoul, Daewoo Motor Company officials said that payment
was being "delayed" by a lack of working capital following
the breakdown of talks with Ford.  However, negotiations
have already resumed with other potential bidders for
Daewoo Motor, including General Motors and a
DaimlerChrysler/Hyundai consortium.

The officials issued assurances that the Korean Development
Bank was putting together funding arrangements to allow
payment to be made.  On Wednesday, employees were given
time off to explain the non-payment to their banks,
building societies and other creditors.  They were told
they would receive an update on Monday regarding the
expected payment date and would be reimbursed for any bank
charges incurred.

This is the fourth time in recent months that the Worthing
salaries have not been paid on time.  Manufacturing Science
and Finance Union officials are seeking urgent talks with
both Daewoo and Stephen Byers, trade and industry
secretary, to find a solution to the problem, which also
affects Daewoo research and development centres outside the
UK.

The 1,200 employees of Daewoo Cars UK, which imported and
sold 34,000 cars last year, were being paid as normal,
Daewoo Cars said on Wednesday night.  Although the British
sales company is part of the insolvent Korean conglomerate,
which collapsed with $80bn debts last year, it generates
substantial revenue from the sale of cars and parts in the
UK.  These revenues currently are being used to pay Daewoo
Cars' own employees.

On Wednesday night, Dave Fleming, MSF union regional
officer, said that the Worthing centre's skilled
technicians, designers, computer analysts and other
craftsmen, who earn up to œ30,000 a year, had been put in
renewed fear for their future.

"The workers are being treated with contempt and the
decision to withhold their pay is completely unacceptable,"
he added.

Ford is understood to have pulled out from the Daewoo deal
after finding worse-than-expected cash flow and other
structural problems.  The finding of a new buyer for Daewoo
Motor remains problematical. (Financial Times  28-Sept-
2000)

HANVIT BANK: In US$400M debt-refinancing deal
---------------------------------------------
Hanvit Bank, Korea's second-largest commercial lender, has
secured US$400 million in a combination of loans and
floating rate notes with which to repay more expensive
debt.

The bank raised 30 billion yen (about HK$2.17 billion) in
notes and another US$120 million of three-year loans, said
Park Si-wan, a Hanvit finance official.  Hanvit, KorAm Bank
and other Korean lenders are increasingly tapping capital
markets, buoyed by the nation's recovery from Asia's
financial crisis of 1997-1998.

With the new money, Hanvit will repay emergency loans it
tapped at the peak of the crisis. "The proceeds will be
used to repay the more expensive debt," Mr Park said.

In early 1998, Korea's financial institutions rescheduled
about US$21.7 billion of their foreign currency debt and
agreed to pay interest rates about 300 basis points more
than the London Interbank Offered Rate. Hanvit has about
US$780 million of debt from that period.

The bank also plans to sell US$250 million of asset-backed
securities next month for working capital and other debt
refinancing. (South China Morning Post, Bloomberg  28-Sept-
2000)


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

RASHID HUSSAIN BHD: Shares fall in reaction to revamp
RHB CAPITAL: Shares fall in reaction to revamp
-----------------------------------------------------
SHARE prices of RHB Capital Bhd and its holding company,
Rashid Hussain Bhd (RHB) were pounded on the KLSE yesterday
as the market apparently reacted negatively to news of
their proposed restructuring.

At the close, RHB Capital's share price was down by 37 sen
or 12.33% to RM2.63, while RHB dropped 16 sen to RM2.10. At
one stage, RHB Capital's share price fell by 47 sen to an
intra-day low of RM2.53.  However, RHB Sakura Merchant Bhd
rose two sen to close at RM2.45.

Analysts contacted by Star Business said they were not
surprised by the selling pressure on both stocks,
describing the RHB group restructuring exercise as "an
unexciting proposition." They said that investors were
concerned by the possible dilution in earnings as well as
higher borrowings as a result of the exercise.

Online equity research house Surf88.Com said RHB, which is
proposing a one-for-10 rights issue at RM2 a piece, would
need to fork out RM101mil for its entitlement to RHB
Capital's proposed one-for-20 rights issue at RM2 per
share.  In turn, RHB is also proposing a one-for-10 rights
issue to raise RM93mil to finance this entitlement.
This would imply a slight shortfall of RM8mil, added
Surf88.Com.

"Although this is not a big amount," Arab-Malaysian
Securities head of research Gan Kim Khoon said the end
result would not help to ease RHB Bhd's current level of
debts, which stood at RM2.8bil or about 4.5 times its
shareholders' funds.  "The move would increase the debts
which had been reduced during the early part of this year,
thus creating more uncertainty among shareholders and
potential investors in the near term."

Surf88.Com added that RHB Capital shareholders might be
slightly worse off should the restructured RHB Capital
trade below 1.8 times its book value as a pure banking
concern.  RHB Capital share capital would be enlarged from
1.8 billion shares to 2.1 billion shares after the proposed
placement of rights and issue of shares to RHB Sakura
shareholders.

Surf88.Com said RHB Capital's net tangible assets and
earnings potential would also be eroded after the exercise
and based on its estimate, "the deal is not favourable
despite the proposed distribution of RHB Securities."
However, Gan of Arab-Malaysian Securities maintained that
"RHB Capital as a pure banking play would acquire better
quality earnings in the future after disposing of the more
volatile contributions from its stockbroking subsidiaries."

An analyst for WorldSec Securities Advisers, Loke See Ooi,
said: "Investors could be switching to RHB Sakura from RHB
Capital as the proposal seems to be more in favour of RHB
Sakura."

The proposed share exchange into new RHB Capital shares was
on the basis of five RHB Capital shares with five new
warrants for every six RHB Sakura shares.  Surf88.Com
commented that a shareholder with 1,000 shares of RHB
Sakura would end up with 833 shares of RHB Capital, 833 RHB
Capital warrants and about 180 shares of RHB Securities.

RHB Sakura's minority shareholders who collectively owned
49% stake of RHB Sakura prior to the scheme would own 6.5%
of RHB Capital and 6.4% of RHB Securities post-
restructuring.  This indicated the proposal would be
favourable to RHB Sakura shareholders who stand to gain
even before valuing the proposed free warrants which will
come with the share exchange. (Star Online  28-Sept-2000)


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

A.T.De CASTRO SECURITIES: Among 71 brokers SEC penalizes
LARRGO SECURITIES: Among 71 brokers SEC penalizes
MANDARIN SECURITIES: Among 71 brokers SEC penalizes
PCCI SECURITIES: Among 71 brokers SEC penalizes
PNB SECURITIES: Among 71 brokers SEC penalizes
SECURITIES 2000: Among 71 brokers SEC penalizes
WEALTH SECURITIES: Among 71 brokers SEC penalizes
--------------------------------------------------------
The Securities and Exchange Commission has penalized 71
broker firms for violation of securities rules and
regulation in connection with the trading of shares of
controversial property and gaming firm BW Resources Corp.

The 71 brokers include A.T. De Castro Securities,
Securities 2000, PNB Securities, Mandarin Securities, PCCI
Securities, Wealth Securities and Larrgo Securities.  These
brokers, along with other individuals and organizations,
were earlier recommended for criminal prosecution by the
Department of Justice for allegedly manipulating the share
prices of BW.

The individuals, on the other hand, include presidential
friend and BW majority shareholder Dante Tan, Philippine
Stock Exchange chair emeritus Eduardo Lim Sr., Eduardo Lim
Jr., and Tan's associates Jimmy Juan and Ramon Lee.

The SEC expects to raise P3.55 million from the administra-
tive fines of P50,000 for each brokerage house. SEC's
Prosecution and Enforcement Department detected the
violations in an audit of the transactions of the erring
firms.  SEC said 64 of the 71 broker firms had already paid
the penalty. The remaining seven brokerage houses that have
failed to pay the compromise penalty including PNB
Securities would be subject to a formal investigation.

The complaints filed by the SEC with the Justice department
last July 17 said at least six violations had been
committed by the erring parties including wash sales,
matched orders, making the close or painting the tape, the
abuse in the use of private placements, EQ trade and done-
thru transactions.

Wash sale is a transaction that leaves no change in
beneficial ownership while marking the tape refers to
trades executed at or near the closing time of trading for
the purpose of fixing the closing price of shares for the
day. EQ trade, on the other hand, refers to the transfer of
shares to one broker who in turn will distribute these to
numerous clients to create a semblance of active trading.

The SEC expects to file either this month or on October a
new complaint against more broker firms and individuals
found to have fraudulently traded shares of BW. (Manila
Times 28-Sept-2000)

CAPITOL WIRELESS INC.: Creditors OK restructuring
-------------------------------------------------
Capitol Wireless, Inc. yesterdy finally signed a debt-
restructuring agreement with a consortium of creditor
banks, a move that would help the telecom firm recover from
the ravages of the Asian financial crisis in 1997.

The signing was led by Republic Telecommunications Holdings
(Retelco) chairman Jose Luis Santiago; president and chief
executive officer Epitacio R. Marquez; and representatives
of creditor banks led by Land Bank of the Philippines.

"We hurdled the first obstacle by reaching an agreement
with our creditor banks. Now we can focus on harnessing the
full potential of Capwire which includes actively
entertaining prospective investors and re-engineering the
company to meet market demands for value-added products and
services," Marquez said.

Capwire has total obligations of P1 billion to creditors.
Most of its creditor banks are state-owned, with LandBank
having the largest exposure. Other creditors include
Development Bank of the Philippines and the Philippine
National Bank.

"The debt restructuring is also significant because it
helps, in a way, to improve the public perception that
state-owned banks are saddled with non-performing loans and
poor loans-loss provisions. It is our responsibility to
prove our credibility and our reputation, and this, I
believe, extends to our relationship with our creditors,"
Marquez said.

Meanwhile, Capwire senior vice president and chief finance
officer Joel Aguilar said that since the start of the year,
Capwire has been scouting for a prospective investor who is
willing to forge a partnership with the company.  He said
that although there was a slight delay in the completion of
the debt-restructuring agreement, a number of investors are
still interested to negotiate with Capwire.

"We were able to assure our creditor banks of Capwire's
long-term viability. They are still interested. We
explained to them that since the signing would be moved
from January to September, a change in the overall schedule
of the plan would also be moved," Aguilar explained.
(Manila Times 28-Sept-2000)

JADE BANK: Central bank files more fraud suits vs. execs
--------------------------------------------------------
Bangko Sentral (the Central Bank) has filed eight more
counts of falsification of documents or estafa against top
executives of Jade Progressive Savings and Mortgage Bank
(Jade Bank) at the Department of Justice (DoJ) for
allegedly diverting some 3.033 million Philippine pesos
($.066 million at PhP46.198=$1) in funds.

In a complaint-affidavit filed by general counsel Juan de
Zu¤iga, Jr., the central bank alleged Jade Bank founder and
former president Luis L. Co, his son and former assistant
vice-president Alvin Milton S. Co and the elder Mr. Co's
secretary, Myla Jardeleza, conspired to misappropriate the
funds.

The funds were supposedly intended as payment to ACME
Investigation Services, Inc.'s investigation and
surveillance services. Two weeks ago, the Bangko Sentral
filed three counts of falsification and estafa charges
against the three individuals for allegedly
misappropriating PhP1.57 million of the thrift bank's
funds.

The Bangko Sentral said Messrs. Co and Ms. Jardeleza "made
it appear that there was a contract between Jade Bank and
ACME for investigation and surveillance services when no
such services were rendered." It said the money "went to
the respondents to the prejudice of Jade Bank."

Based on its investigation, the Jade Bank executives'
actions took place in 1997.  Messrs. Co allegedly
authorized the release of the money with the "indispensable
cooperation" of Ms. Jardeleza. (Business World 28-Sept-
2000)


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

NATIONAL HOUSING AUTHORITY: To restructure debt, sell units
-----------------------------------------------------------
The National Housing Authority (NHA) is moving to refinance
part of its 26-billion-baht debt and collect unpaid
instalments from homebuyers in an attempt to improve its
financial position.

Additionally, in the fiscal year beginning next month, the
state enterprise will try to sell its stock of 10,000 units
nationwide in wholesale lots to investors. Potential buyers
include the Royal Thai Police, the Department of Skills
Development and Assumption Business Administration
University.

"This will reduce our losses. We'll see about 500 million
baht in net losses this fiscal year. The foreign-exchange
loss and early retirement scheme for staff will partly
contribute to the loss," said Sukree Coompanthu, the deputy
governor.

By the end of this month, the NHA will realise 80 million
baht in foreign-exchange losses on a loan of US$17 million,
and pay 170 million baht in early retirement benefits.
The agency began realising losses over the past two fiscal
years, 21 million baht in 1998 and 80 million baht in 1999,
due mainly to the property crisis. It now has 2,100 staff,
down from 2,400 early this year.

"We survived the crisis and have to prepare for busier work
next year. We'll be more compact and efficient to help
revive the property market," said Mr Sukree, who has been
nominated as the NHA's new governor.

He said that the NHA would borrow four billion baht from
the Social Security Office to refinance some of its debts.
An agreement for the first 500 million baht was signed
yesterday. The NHA has issued 10-year bonds at 6% annual
interest to back the loan. The balance of the loan will be
borrowed in two stages, one billion baht next month and 2.5
billion in November.

"We have to refinance some of our loans because we have a
mismatch of funds. We obtained short-term loans to develop
housing projects but homebuyers pay for their houses over
15 to 30 years," he said. The NHA's cost of funds now stood
at 10% a year.

During the recession, homebuyers missed monthly instalments
and rents totalling between 1.2 billion and 1.3 billion
baht. To speed up debt collection, the NHA will hire
private companies. Its subsidiary, Community & Estate
Management Co (Cemco), will collect the money in some
instances.

"We understand the economic situation and try to compromise
with homebuyers. But in the worst case, we hire lawyers to
prosecute those who refuse to pay but can afford to do so,"
Mr Sukree said.

The NHA expected unpaid instalments to fall to 500 million
baht by the end of next year, he said. Mr Sukree said that
with a strong financial base, the NHA hoped to build
housing projects for civil servants and middle-income
earners in provinces where there was demand. The
redevelopment of 9,000 flats at Din Daeng in Bangkok was
part of the plan, he added. (Bangkok Post  28-Sept-2000)

NATURAL PARK: Filing extension sought for rehab plan
----------------------------------------------------
Having applied for business rehabilitation under the
Bankruptcy Act, the Stock Exchange of Thailand ordered
Natural Park to submit its rehabilitation plan by
September 22, 2000. The rehabilitation planner has request
a 30-day extension in filing the plan, citing excessive
details needing to be considered, handled and checked.

OCEAN GLASS PLC: Settles debt with FIDF
---------------------------------------
Ocean Glass Public Company Limited has reported a debt
settlement arrangement to the Stock Exchange of Thailand
(SET).
At a board meeting, the Board of Directors directed the
Managing Director to negotiate and settle debt with the
Financial Institutions Development Fund. The agreement
subsequently reached involves outstanding principal of
US$447,580 and  accrued interest totaling US$142,251.49, at
the rate of MLR + 3%. As a result of the negotiation, the
company paid the outstanding principal and interest to the
Financial Institutions Development Fund on September  26,
2000. The Company recorded a gain from debt restructuring
in the amount of US$78,693.62

THANAMASS FINANCE: Placed in receivership
-----------------------------------------
The Central Bankruptcy Court has declared Thanamass Finance
bankrupt and placed the company in receivership.

The Financial Sector Restructuring Authority filed a
request with the court on Tuesday to declare the firm
bankrupt to help protect the claims of all creditors of the
firm, said Kamol Juntima, FRA chairman.

"Despite the fact the eligible creditors of Thanamass
Finance were called to convene on Oct 30 to hear the
results of claim adjudication and details on the amount of
payments and distribution procedures, it was still
necessary to bring the company into bankruptcy proceedings
to protect the interests of all creditors who had filed
their claims with the FRA," Mr Kamol said.

He said some creditors of Thanamass Finance had filed law
suits against the company asking for full payment of their
outstanding debts before other creditors. The Civil Court
had ruled in favour of these creditors. As a result, other
creditors had been placed at a disadvantage.

Although the FRA has sought to stop the suits, Mr Kamol
said the authority of the FRA was legally limited.
He said to protect the interests of all creditors, placing
the firm into bankruptcy was the best option. Once under
receivership administered by the Legal Execution
Department, the firm's transactions will cease and the
distribution of proceeds from asset sales will be handled
by receivers.

All creditors of this company will have to file their
claims with the Legal Execution Department within the
specified period. The creditors who had already filed their
claims with the FRA will have to file similar claims with
the department.  Of the 56 suspended companies under the
supervision of the FRA, five have already been brought into
the bankruptcy process.

Plans to distribute proceeds raised from asset auctions for
the 51 remaining firms will begin over the next few months.
A creditors' meeting for seven finance companies is
scheduled for Oct 30 to Nov 7. Mr Kamol said there was no
point in the creditors bringing legal action against the
remaining suspended finance companies since this may delay
the distribution process.

He said that the restructuring authority would bring those
companies into the bankruptcy proceedings promptly to give
equal protection to all creditors. As a result, the
creditors will receive less in the form of returns, due to
a 5% deduction from the company's assets to be paid as a
bankruptcy action fee.

Thanamass Finance was established in 1957 with a registered
capital of approximately 244 million baht. It was suspended
along with 41 other finance companies in August 1997. The
company had 2.9 billion baht in assets and 4.3 billion baht
in outstanding debts as of July 31. The Financial
Institutions Development Fund holds 99.7% of the total
outstanding debt. (Bangkok Post  28-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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