---

     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, October 20, 2000, Vol. 3, No. 205

                                       Headlines


* A U S T R A L I A *

BALFOURS BAKERY: Needs $3M lifeline
BANK OF WESTERN AUSTRALIA: Biggest victim of Daswani flight
BHP LTD.: Considering appeal of tax assessment ruling
HARVEY NORMAN: Tough times ahead warning drops shares
ISIS COMMUNICATION: Stock falls another 25%
NOBLE HOUSE: In liquidation


* C H I N A  &  H O N G  K O N G *

PACIFIC CENTURY CYBERWORKS: Shares plunge further


* I N D O N E S I A *

PT METRODATA ELECTRONIS: To issue bonds to repay debts
PT MUARA ALAS PRIMA: Court rejects IBRA's bankruptcy suit


* J A P A N *

MATSUSHITA-KOTOBUKI ELEC.INDUS.: To post US$52M 1H loss
NIPPON SHINPAN: Gets emergency short-term financing
SHIMIZU CORP.: Posts 6-mo. loss on extraordinary charge
SOGO CO: To keep 13 stores, cut jobs by half


* K O R E A *

CENTRAL MERCHANT BANKING: To go under holding company
DAEWOO HEAVY INDUSTRIES: Trade suspended for restructuring
DAEWOO MOTOR: Polish plant to lay off 3,600
HYUNDAI ENGIN.& CONSTR.: Creditors OK add'tl rescue plan
H&S BANK: To go under holding company
KOREA MERCHANT BANK: To go under holding company
YEONGNAM BANK: To go under holding company


* M A L A Y S I A *

MOL.COM BHD: Posts RM6.54M extraordinary loss
PUNCAK VISTA SDN: Still in default on loan
SETEGAP BHD: Finalizes debt restructuring
TIME ENGINEERING: Sells 21.5% Renong stake to cut debt


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

ASB GROUP: Asks SEC to extend debt-relief until year-end
UNIWIDE GROUP: SEC rejects escrow to settle back taxes


* S I N G A P O R E *

NEPLINE BHD: To sell ships to settle loans


* T H A I L A N D *

WATTACHAK MEDIA GROUP: Gov't to auction off assets


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

BALFOURS BAKERY: Needs $3M lifeline
-----------------------------------
Balfours Bakery is in need of a A$3 million infusion to
return the company to profitability, according to CEO
Malcolm Gibbons Oct. 17.

He said the Adelaide-based bakery, began in 1894 and
currently employing 550 staff, currently owes creditors
about A$4 million. That is why it was voluntarily put into
receivership, on 16 October 2000.  On the same day,
receiver Bruce Carter of Ferrier Hodgson and Company,
blamed the goods and services tax for much of Balfours'
financial problems.

BANK OF WESTERN AUSTRALIA: Biggest victim of Daswani flight
-----------------------------------------------------------
Bank of Western Australia has emerged as the biggest loser
from the collapse of Mr Lux Daswani's retail and property
empire, the Perth-based bank yesterday revealing that its
exposure to the fugitive businessman could result in write-
offs of up to $20 million.

BankWest also revealed in a statement that it had
commissioned an independent review to investigate "certain
aspects" of the $25 million in loan facilities it had with
companies controlled by Mr Daswani. The Australian
Securities and Investments Commission has contacted the FBI
and other international agencies to help find Mr Daswani,
who fled Australia on October 1 as administrators were
appointed to his Surf Dive 'n Ski retail chain in Victoria,
Queensland and Western Australia. (The Daswani companies
are not related to the Surf Dive 'n Ski stores in NSW owned
by Mr Tom Tsipris.)

BankWest moved next day to appoint Mr Mark Mentha as
administrator to other Daswani companies over which the
bank held security.  BankWest said property and asset
valuations it received from Mr Mentha on Friday indicated
it would have to make specific loss provisions in its
accounts.

"The amount of the specific provision is estimated to be
between $15 million and $20 million and this will impact on
the bank's second-half result," BankWest said.

Such provisions would make it the biggest loser from the
collapse of the Daswani group, which has total debts of
more than $50 million. These include a secured exposure of
$11.8 million to ANZ Banking Group.

The Daswani exposure represents the biggest stumble by
BankWest with its geographical expansion and its credit
quality. It will now be even harder for it to match last
year's $136 million profit after it reported a 1 per cent
fall in interim profit to $68.8 million.

Revelations of the Daswani exposure could also affect
BankWest's share price when stock exchange trading begins
this morning.  While BankWest released its statement to the
Australian Stock Exchange before the close of trade
yesterday, the full statement was not released until after
the market had shut.

BankWest shares traded 3› higher at $3.63 yesterday.
Others with an exposure to Daswani companies include GIO
Australia, St George Bank, NAB, Axa, Bank of Queensland and
Bendigo Bank. (Australian Financial Review  17-Oct-2000)

BHP LTD.: Considering appeal of tax assessment ruling
-----------------------------------------------------
BHP Ltd. is considering whether to appeal a ruling by the
Federal Court against it upholding a A$213 million
(US$110.8 milion) claim by the Australian Tax Office
against the company.

The full bench of the Federal Court overtuned a federal
judge's ruling in Favor of BHP on a claim by the Australian
Tax office for A$88 million in tax owed by the company plus
A$125 million in interest charges. BHP has disclosed a
contigent liabilities of A$211 million in the notes to
its annual accounts related to the ATO claim.

The company has previously paid A$ 79 million of the total,
which has been accounted for as a noncurrent asset, pending
finalization of the litigation.  The dispute concerns BHP's
deducting of financing costs paid to General Electric Co.
when the Australian company bought the Utah Group in the
early 1980s. (Asian Wall Street Journal  19-Oct-2000)

HARVEY NORMAN: Tough times ahead warning drops shares
-----------------------------------------------------
Harvey Norman shares fell almost 5 percent yesterday after
the retailer admitted it was starting to labour in the wake
of adverse trading conditions created by the GST and the
Olympic Games.

Investors had almost come to look upon Harvey Norman as
invincible for its spectacular rises in sales and earnings
during the past two years, but were shaken when the company
warned there was no immediate end in sight to the slowdown
in trading. Finance director Mr John Skippen said higher
petrol prices, the second instalment payment on Telstra
receipts, confusion arising from an overhaul of the tax
system and the Olympic Games had all reduced shoppers'
ability and will to spend.

"All these things have put a cloud over the economy," Mr
Skippen said. "There are no guidelines to predict what will
happen from here as this set of circumstances hasn't
happened before."

Shares in Harvey Norman fell 21c to $4.20 yesterday, but at
one stage were changing hands at $4.05 before an afternoon
rally breathed life into the stock. The warning
overshadowed another strong rise in quarterly sales for the
company.

In the three months to September 30, sales by Harvey Norman
company-owned and franchised stores increased 20.8 per cent
to $597.06 million. Excluding new stores, sales were up
13.3 per cent. Both measures were comfortably ahead of the
increases reported a year ago, helped by an Olympics-
inspired splurge in September on televisions, video
recorders and other electrical goods.

"The Olympics were positive for electrical and brown goods,
but overall were bad for our business and for retailers in
general," Mr Skippen said.

Harvey Norman warned that sales written for the quarter
were down for many franchisees, in particular in categories
such as furniture, bedding and hardware.  The negative
trading conditions had placed pressure on franchisee
margins, the company said.

"The threat of an erosion in margins was the big influence
on the share price. There is always the risk with Harvey
Norman of it being a peak-cycle company," one analyst said.
"The market is clearly uncomfortable with the convergence
of all those negative trading factors, the analyst said.
"Gerry himself has been a seller of the stock."

Since April, executive chairman and company founder Mr
Gerry Harvey has sold almost 30 million Harvey Norman
shares, raising around $110 million. However, he retains
about 29.2 per cent of the retailer, worth $1.25 billion.
Harvey Norman expects to receive a boost from the 23 stores
it bought from the embattled Vox electrical goods chain.
The new stores will start contributing significantly in the
March quarter after being refitted in line with the Harvey
Norman format. (Sydey Morning Herald  19-Oct-2000)

ISIS COMMUNICATION: Stock falls another 25%
-------------------------------------------
Shares in Isis lost another 25 per cent yesterday following
Tuesday night's news that the online education and
broadcast media group has significantly downgraded profit
forecasts.

Isis shares hit a record low of 18c and closed down 7.5c at
19.5c after the company told investors it was expecting to
incur a net loss of $29.7 million and revenue of $22.6
million for the 2000 calendar year. According to its July
1999 prospectus, Isis was supposed to report revenue of $67
million for the period and a profit of $5.6 million.

Adam Radly's admission that Isis Communications's 2000
financial results would fall significantly short of
expectations also looks to have cost him online financial
provider Market Faxts.

Isis Communications launched a takeover bid for the online
financial provider in August, trumping rival suitor Telco
Australia.  But it is understood a fall of 75 per cent in
the Isis stock price since the bid was launched has forced
Market Faxts directors to recommend that shareholders
reject the offer.

It is understood Market Faxts last night drafted a letter
to shareholders advising they reject Isis's offer - which
now values shares in Market Faxts at 4.9c - and will hold a
board meeting today to formalise the decision. Yesterday
shares in Market Faxts closed down 1.5c at 8c. Telco
Australia's on again, off again share offer looks also to
be doomed. Telco Australia has been forced to press ahead
with its 2-for-5 share offer after two requests to withdraw
the bid were rejected by ASIC.

Telco Australia's offer expires on Monday. So far it has
received acceptances from less than 1 per cent of Market
Faxts shareholders. Analysts yesterday expressed their
surprise at Isis's seeming reluctance to alter its business
model despite three out of four business divisions failing
to generate any meaningful revenue.

As outlined in its prospectus, Isis consists of four
business units - Isis Digital Broadcasting, Isis Education
and Training, Isis Internet Services and Isis Communica-
tions. According to analysts, the $22.6 million projected
in revenue this year comes solely from the digital
broadcasting division - almost hitting the prospectus
forecast of $25.7 million. (Sydney Morning Herald  19-Oct-
2000)

NOBLE HOUSE: In liquidation
---------------------------
Noble House has gone into liquidation and the property on
which the hotel was to be situated at 2 to 8 Dixon Street,
Chinatown, is in the hands of a receiver.

Ramada International had signed a license agreement with
Noble House Holdings to operate a hotel that was planned
for Sydney's Chinatown. A Ramada representative said the
company would remain committed to the Chinatown development
if a new purchaser could be found.


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

PACIFIC CENTURY CYBERWORKS: Shares plunge further
-------------------------------------------------
Shares in Internet group Pacific Century CyberWorks Ltd
dropped 8.6 percent Thursday, continuing their slide over
worries about the company's debts and criticisms of its
business plan.

Run by tycoon Richard Li, CyberWorks closed at 6.35 Hong
Kong dollars - less than a quarter of the price it hit at
its peak in mid February, shortly before it launched a bid
to buy Hong Kong's top phone company, Cable-and-Wireless
HKT. Analysts have expressed concerns about the debts
CyberWorks took on to facilitate Asia's biggest-ever
corporate takeover.

But CyberWorks last week entered into a joint venture with
Australian telephone giant Telstra Corp that will enable it
to slash its debts from $US9 billion ($A17.36 billion)
to $US5.5 billion ($A10.61 billion). That hasn't helped the
share price, which showed a brief rally - lasting less than
a day - in response to the Telstra deal then plunged back
into negative territory.

CyberWorks' steep decline cut the value of the cash-and-
shares takeover of Cable-and-Wireless HKT to about $US28.5
billion ($A54.97 billion) when it closed in August, about
$US10 billion ($A19.29 billion) lower than the estimated
price when CyberWorks announced its bid in late February.

Li, son of billionaire Li Ka-shing, says he wants to use
revenues from the phone company to invest in Internet
ventures with a potentially huge payout. But analysts have
said CyberWorks has been vague about its plans, which may
be overly ambitious. (Australian Financial Review  19-Oct-
2000)


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

PT METRODATA ELECTRONIS: To issue bonds to repay debts
------------------------------------------------------
Intending to repay part of its debts with the proceeds,
information technology company PT Metrodata Electronis Tbk
plans to issue bonds worth Rp65 billion (US$7.3 million).
Metrodata president Lesan Limanardja said that 72 percent
of the bond issuance proceeds will be used to settle debts
totaling Rp45 billion to Lippo Bank due at the end of March
2001, while the remaining 28 percent will be used for a
capital participation in Metrodata Global Akses (25
percent) and Metrodata Solusi Internet (3 percent).

PT MUARA ALAS PRIMA: Court rejects IBRA's bankruptcy suit
---------------------------------------------------------
The Jakarta Commercial Court has rejected a bankruptcy suit
filed by the Indonesian Bank Restructuring Agency (IBRA)
against Dharmala Group affiliate PT Muara Alas Prima.

Judge Erwin Mangatas Malau, who presided over the three-
member panel of judges which heard the case, said Muara
Alas dissolved itself as a business entity in July and
that the liquidation of the company's assets is ongoing.

"The company cannot be (sued) for bankruptcy," Malau said,
adding that the company's self-bankruptcy application has
been registered with the government and announced through
the media.

The independent ad hoc judge on the panel, Elijana,
dissented from the opinion of the panel, saying that IBRA
may still file a bankruptcy suit as the liquidation process
is not yet complete.  The ruling of the panel still stands.
(AFX News Limited  18-Oct-2000)


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

MATSUSHITA-KOTOBUKI ELEC.INDUS.: To post US$52M 1H loss
-------------------------------------------------------
Matsushita-Kotobuki Electronics Industries Ltd. confirms it
will record a consolidated net loss of 5.6 billion yen
(US$52 million) for the first six months of this fiscal
year ended Sept. 30. By comparison, the company posted a
2.1 billion yen profit for the same period a year ago.
Matsushita-Kotobuki had originally projected a loss of 3.8
billion yen. The wider loss is mainly due to recording a 6
billion yen extraordinary loss on special retirement
allowances -- 2.5 billion yen more than projected. The
voluntary retirement program attracted 937 employees, 2.7
times the expected number.

NIPPON SHINPAN: Gets emergency short-term financing
---------------------------------------------------
Nippon Shinpan, one of the country's largest credit card
companies, has secured 550 billion yen ($5.08 billion) in
emergency short-term loans ahead of the expected
liquidation of a troubled affiliate.

Sanwa Bank, Nippon Shinpan's main bank, confirmed yesterday
it expected about 18 banks would extend 250 billion yen in
short-term loans for a period of two to three months and
another 300 billion yen in a one-year credit line.  The
banks' support, which will help Nippon Shinpan survive the
immediate crisis, contrasts markedly with the Japanese
banks' recent reluctance to rescue ailing companies.

This reluctance has contributed to collapses in the past.
Most recently, Tokai Bank, which is merging with Sanwa Bank
next spring, withdrew its support for Chiyoda Life, a
troubled life insurance company, which last week collapsed
with debts of Y2,940bn.  Nippon Shinpan is the main
shareholder in Inter-Lease with an 8.8 per cent stake.

The banks' support will help Nippon Shinpan cover the loss
of Y45bn it invested in Inter-Lease. A further 27 billion
yen will go towards payments owed by Inter-Lease that it
guaranteed.  Inter-Lease is likely to be liquidated early
next month with 800 billion yen in liabilities.

In spite of restructuring efforts in 1993 and 1997, with
the financial support of Nippon Shinpan and others, the
leasing company has negative net worth of 300 billion yen.
It too is paying for aggressive lending to speculators,
during the "bubble" economy of the late 1980s, which has
left Inter-Lease with problem loans of 277 billion yen.

Last week, Nippon Shinpan lowered its earnings forecast to
reflect extraordinary losses related to Inter-Lease. The
company expects full-year net profits to drop nearly 60
percent from 12 billion yen to 4.9 billion yen.  But the
problems of the credit card company are not restricted to
Inter-Lease, analysts say.

"It's definitely got some severe problems," says Paul
Heaton, industry analyst at Deutsche Bank in Tokyo.
"The problem is, we don't know how bad it is."

The company is paying for its heavy lending to real estate
speculators during the years of asset inflation in the late
1980s. As asset prices have fallen sharply, Nippon Shinpan
has incurred substantial unrealised losses.  While Nippon
Shinpan says bad loans amounted to 63.8 billion yen out of
corporate lending of 113 billion yen at the end of March,
Mr Heaton believes three-quarters of its corporate lending
is non-performing, based on his estimates of consolidated
figures.

The company does not provide figures for corporate lending
on a consolidated basis.  Its poor disclosure has
discouraged a number of foreign analysts from covering the
company.  Last week, for example, it emerged that Nippon
Shinpan had in March quietly reduced its stake in Inter-
Lease from 18.8 percent to 8.8 percent in order to avoid
having to consolidate it.

Under new accounting rules, a company that owns a stake of
more than 15 percent in another company must consolidate
it.  More curiously, in a highly unusual move, the stake
was sold to several of its internal auditors. Inter-Lease
said it had no obligation to disclose this information.

However, Nippon Shinpan's saving grace is that it has solid
credit card and consumer loan businesses, which comprise
the bulk of its operations. It has 16.6 million credit card
holders and enjoys wide reach in Japan. As such, analysts
say one option may be for the banks to swap their loans
into equity. The businesses are attractive ones which
banks, such as those that are supporting Nippon Shinpan,
are keen to enter. "It would be an attractive company to
own," Mr Heaton says. (Financial Times  18-Oct-2000)

SHIMIZU CORP.: Posts 6-mo. loss on extraordinary charge
-------------------------------------------------------
Shimizu Corp sustained an extraordinary charge of 135.8
billion yen (US$ 1.26 billion) for the six-month period
ended Sept. 30, partly because it wrote down the value of
real estate for sale and rental properties to eliminate
their unrealized losses. Consequenlty, Shimizu recorded an
interim consolidated net loss for the period of 73 billion
yen, up from earlier forecasts of 28 billion yen.

SOGO CO: To keep 13 stores, cut jobs by half
--------------------------------------------
The latest plan for failed department store chain Sogo
Corp., which currently is under court-supervised
restructuring, calls for it to continue operations of 13 of
its 22 stores, while shutting or selling the rest.
According to company officials, the company will cut its
9,900 work force by half, reducing to between 5,000-6,000.


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

CENTRAL MERCHANT BANKING: To go under holding company
H&S BANK: To go under holding company
KOREA MERCHANT BANK: To go under holding company
YEONGNAM BANK: To go under holding company
-----------------------------------------------------
The government plans to merge four financially troubled
merchants banks - Central Merchant Banking, H&S Bank, Korea
Merchant Banking and Yeongnam Bank - and put them under a
financial holding company by year end, according to the
Financial Supervisory Commission.

After providing an injection of public funds to them, the
merged merchant bank will become an affiliate of the Korea
Deposit Insurance Corp., then be placed under a financial
holding company. The government has set aside 2 trillion
won of public money for the cleanup of the four companies.
The state corporation then will assume the bad assets of
the merchant banks. The government, meanwhile, will sell
them to prospective buyers under no set time schedule.

DAEWOO HEAVY INDUSTRIES: Trade suspended for restructuring
----------------------------------------------------------
Daewoo Heavy Industries has been suspended from trade after
the implementation of its corporate restructuring, which
involves the formation of three new units.

With the recent passage through the National Assembly of a
revision to the Law on Limiting Special Tax Treatment,
Daewoo Heavy Industries will be divided into a shipbuilding
unit, a machinery company and a remaining entity which will
assume the bad assets of the two spin-offs. The three units
officially will be initiated Oct. 23 and be listed as
separate entities on the Korea Stock Exchange this year.

The listing price of the remaining entity, which will hold
DHI's bad assets, will be determined via ask/bid quotes in
the market. The listing prices for the two operating
entities will be determined in proportion to the respective
net assets held against the market capitalisation of the
old company, the company explained.

DAEWOO MOTOR: Polish plant to lay off 3,600
-------------------------------------------
Daewoo Motor plans to lay off 3,600 staff at its plant in
Poland before the end of the year. A company executive said
the decision to cut staff to 5,100 became necessary due to
shrinking regional demand for autos. Last year's market
demand for 660,000 vehicles is projected to fall by 100,000
this year. Daewoo's Polish plant was ranked at the top for
domestic sales in 1998, but began to run into difficulties
following the parent group's insolvency declaration in
summer 1999.

HYUNDAI ENGIN.& CONSTR.: Creditors OK add'tl rescue plan
--------------------------------------------------------
Creditors of Hyundai Engineering and Construction Co. (HEC)
accepted the company's plan to raise additional cash of
around 581 billion won on top of self-rescue measures
announced in August, a top creditor bank official said
yesterday.

The move is widely viewed as removing the troubled
construction unit of the giant Hyundai Group from a list of
large nonviable companies to be liquidated under a
government-led corporate restructuring program.  "After
reviewing the self-rescue plan closely, the heads of
creditor banks agreed to give it the green light," said Kim
Kyung-lim, president of Korean Exchange Bank which is HEC's
main creditor.

Under the self-saving program, HEC will be required to
secure about 581 billion won in addition to a fund-raising
plan announced in August as part of its efforts to pull out
of a liquidity crisis.  Chung Ju-yung, founder of the
conglomerate, will make a capital investment of around 200
billion won in HEC with the process from the sale of his
stake in Hyundai Motor Co., Kim said.

HEC will also dispose of its stake in Hyundai Asan Corp., a
unit in charge of the group's North Korea projects, while
Hyundai Asan Chairman Chung Mong-hun will sell off his
interests in other Hyundai units, Kim said.  If Chairman
Chung's sale of his stakes proceed well, the creditors may
secure them as collateral for loans to HEC against which
they will issue exchangeable bonds, President Kim said.

In its August self-rescue plan, HEC said it will issue
exchangeable bonds against its 23.9 percent stake in
Hyundai Merchant Marine to raise 123 billion won. To help
HEC to proceed with its self-rescue measures without a
hitch, the creditors will refrain from collecting maturing
loans from the company and roll over maturing bonds and
commercial paper, the KEB head said.

With creditors' accepting the additional self-rescue plan,
HEC is expected to try to stay afloat till yearend without
financial assistance from the creditors, such as a debt-
for-equity swap.  Minister of Finance and Economy Jin Nyum
said Monday that HEC's creditors should not grant the
company a debt-for-equity conversion.

Meanwhile, HEC said yesterday that the company will cut the
number of its executives from 20 to 30 percent as part of
the self-rescue program. In a related move, HEC's 139
executives tendered resignation en masse yesterday, the
company said.

Earlier Tuesday, HEC said it will sell its stake in Hyundai
Heavy Industries, or 5.3 million shares, back to the
shipbuilder to tide over its credit crunch.  HEC has been
mired in a liquidity crunch since May this year when two
sons of founder Chung staged a battle to capture the
chairmanship of the nation's largest conglomerate. In the
first half of this year, the company recorded a net loss of
177.9 billion won on sales of 3.89 trillion won. (Korea
Herald  19-Oct-2000)


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

MOL.COM BHD: Posts RM6.54M extraordinary loss
---------------------------------------------
Mol Com Bhd reports that its unit Dazzling Support Sdn Bhd
disposed of a 1.3 percent stake in MTD Capital Bhd on the
open market between Aug 3 and Oct 10 for a total of RM8.939
million cash, at an average share price of RM5.45. The
group incurred an extraordinary loss of RM6.545 million
from the disposal, however. The company added that cash
proceeds from the sale would be used to reduce the
borrowings.

PUNCAK VISTA SDN: Still in default on loan
------------------------------------------
United Engineers Malaysia Bhd has confirmed that its
associate company Puncak Vista Sdn Bhd is still in default
on payment of principal and interest on a 363 million
ringgot syndicated term loan and convertible bank guarantee
facility as well as a 30 million ringgit revolving credit
facility.

As of end-July, Puncak Vista had fully used up the loan
facility and some 6.115 million ringgit of the credit
facility.  The principal and interest due and payable for
the loan facility as of end-July totaled 363 million
ringgit and 117.591 million ringgit. The principal and
interest due and payable for the credit facility totaled
6.115 million ringgit and 1.802 million ringgit
respectively.

Both facilities are secured against land in Kuala Lumpur
owned by Puncak Vista and a debenture covering all of its
assets. The debenture empowers Puncak Vista's bankers to
appoint a receiver manager in the event of default. The
company has yet to receive such notice.

SETEGAP BHD: Finalizes debt restructuring
-----------------------------------------
Setegap Bhd has finalized a debt restructuring agreement
with its lenders, according to an announcement Tuesday by
the Corporate Debt Restructuring Committee (CDRC).

The debt restructuring scheme involves the conversion of
all existing outstanding loans of RM95.5 million (US$25.13
million) into a five-year term loan with fixed interest
rate of 9.5 percent over the ten. The official in charge of
disbursement of the procuring entity will be Hiroshi Endou,
Director of Accounts Division, General Affairs Department.

TIME ENGINEERING: Sells 21.5% Renong stake to cut debt
------------------------------------------------------
Malaysian tycoon Halim Saad yesterday shocked the
investment community when he agreed to buy a substantial
block of Renong shares from Time Engineering. His
privately-held Taraf Perdana will buy 21.56 per cent of
Renong from associate Time Engineering for RM874.7 million
(S$404 million).

The share price works out to RM1.746 per Renong share based
on a 10 per cent discount on its last traded price of
RM1.94.  A merchant banker said Time Engineering had no
choice but to dispose of the Renong shares as part of the
restructuring exercise to retire RM5 billion in debts.

"Besides Time dotCom, Renong is its only main asset," he
said, referring to Time Engineering's subsidiary that owns
a prized fibre-optics network.

While Time Engineering will simply use the proceeds to
shave its debts, analysts are baffled on why Mr Halim
decided to raise his shareholding ahead of next February
when he may be forced to buy 32.6 per cent of Renong shares
from United Engineers Malaysia (UEM).  He had promised to
buy the Renong shares from associate UEM if Renong's
share price stayed below RM3.24 by next February.

However, the purchase price will be closer to RM4.50 when
the interest charges are imputed. The fulfilment of the put
option and his latest purchase will boost his personal
stake in Renong to over 70 per cent.  Combined with
holdings of his associates, analysts said Mr Halim could
well turn Renong into his private vehicle.

But in the latest deal, Mr Halim has sought a waiver from
the authorities from making a general offer for the rest of
Renong shares. He also wants assurance that the waiver will
not affect the earlier one from a general offer when he
gave an undertaking in January 1998 to buy the Renong
shares from UEM by February.

A broker said the Time deal could be a prelude to another
restructuring exercise to unlock the value of Renong group.
However, MalaysiaStreet.com said Mr Halim's plan to cough
up RM874.7 million to buy the Renong shares from Time
Engineering could be his way of flexing his financial
muscle.

"If he can raise that sum, then chances are, he may also
have the resources to raise the RM3 billion to meet his
obligation to buy the Renong shares," it added. (Business
Times  20-Oct-2000)


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

ASB GROUP: Asks SEC to extend debt-relief until year-end
--------------------------------------------------------
As creditor banks push for the liquidation of the ASB Group
of Companies, the debt-saddled realty developer is asking
the corporate regulator to extend until the end of the
year, the debt moratorium that has so far shielded the firm
from creditor claims.

In a motion filed with the Securities and Exchange
Commission (SEC), ASB said the extension will give both the
company and the creditors time to resolve their differences
concerning the proposed rehabilitation plan. ASB said that
contrary to allegations raised by a number of its
creditors, the move to extend the debt reprieve is "not
intended to delay proceedings" but to give all parties time
to resolve the issues involved in the deliberation of
the ASB case.

Recently, creditor banks expressed doubts about the
rehabilitation plan prepared by ASB's interim receivership
committee (IRC), alleging the plan is not enough to solve
the realty developer's financial woes and settle obliga-
tions of over 12.7 billion Philippine pesos ($261.77
million at PhP48.516=$1). (Business World  19-Oct-2000)

UNIWIDE GROUP: SEC rejects escrow to settle back taxes
------------------------------------------------------
The entry of French retailer Casino Guichard-Perrachon into
the Uniwide group may take longer than expected. This
possibility loomed after the Securities and Exchange
Commission (SEC) turned down the request of Uniwide's
receivers to "borrow" P80 million in escrow fund from the
proceeds of the sale of the assets of First Paragon
Corp. (FPC), a Uniwide subsidiary, to pay for the parent
company's back taxes.

Monico Jacob, chairman of the Uniwide receivership
committee, last month sought the SEC's permission to gain
access to the fund in order to pay off Uniwide's P130-
million tax delinquency in properties to be transferred to
the bank creditors and to Casino.  A fund representing the
proceeds of the sale of FPC's assets is being held in
escrow and is earmarked for payment to FPC's creditors in
accordance with the Bulk Sales Law.

Jacob said part of the amount, or P80 million, has been
set aside as payment to Uniwide Sales Warehouse Club Inc.,
a creditor of FPC. Jacob said that while they are making
"good progress" in implementing the amended rehabilitation
plan of the Uniwide group, several issues remain to be
resolved in order to meet the conditions set by Casino
before it eventually puts in fresh equity into Uniwide.

Aside from the payment of back taxes, Casino is also
seeking the approval of Uniwide's rehabilitation plan by
its major bank creditors. There are at present seven major
creditor banks that have given their go-signal while three
more have yet to express their concurrence.

"Uniwide has no source of fund for the payment of the above
expenses as they continue to lose from operations," Jacob
said.

He added the P80 million will be immediately repaid as soon
as Casino makes its investment.  But the SEC said since
Casino's infusion will only materialize if the rehab
plan is fully implemented, "then we will in effect be
placing the interest of the creditors of FPC in a very
precarious situation if we are to grant the request."

The agency added such a move would also put it in technical
violation of the Bulk Sales Law, which prohibits the
purchase of mortgage of properties for purposes other than
for the pro rata payment of bona fide claims of the
vendor's creditors. (Philippine Star  19-Oct-2000)


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

NEPLINE BHD: To sell ships to settle loans
------------------------------------------
Nepline Bhd has proposed selling two vessels--MT Eagle
Milwaukee and MT Eagle Memphis -- to American Eagle Tankers
Inc Ltd (AETI) for US$38 million cash. Under a memorandum
of agreement signed on Oct 16, the vessels would be
delivered to AETI between Aug 14 and Dec 31.  The net sales
proceeds are to be used mainly to settle offshore bank
borrowings taken up to finance the vessels in 1996 and as a
deposit to acquire a new double-hull crude oil tanker, the
company said.


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

WATTACHAK MEDIA GROUP: Gov't to auction off assets
--------------------------------------------------
The Revenue Department will auction off assets of the now-
defunct Wattachak media group on Tuesday. The assets that
will go under the hammer include more than a dozen
publication mastheads, the title of Smile Radio, plus land
and buildings.

Authorities seized all assets of Wattachak, which owes more
than 179.07 million baht in taxes, last year. A source at
the Revenue Department said a few investors had showed
interest in the auction, and most were expected to express
interest in only the flagship Wattachak daily newspaper
masthead.

The Revenue Department set the minimum price for Wattachak
daily at 20 million baht while the other titles may vary
from two million to seven million baht each. The value of
all Wattachak titles was estimated at around 38 million
baht, down from 78 million baht assessed earlier.

Aside from Wattachak daily and its three weeklies, there
are Rod (Car), Laeng Ngarn (Job opportunities) and Arkarn
Tidin (Building and Land). Also up for bid will be a 27.14%
stake in Media Plus Co, 18.66% in Thai Sky Cable TV Plc,
17.86% in Thai Television Production Co, 99.99% in Thai
Press & Print Co and 65% in Info Access Co.

Properties include land, office buildings and a printing
house as well as office equipment. It was rumoured that
Nikorn Pornsathit, the Wattachak Group founder who is at
large, might participate in the auction through a
representative.

In addition to 179 million baht in unpaid taxes, Wattachak
has 5.9 billion baht in debt that has not been
restructured. Wattachak's major creditors are Bangkok Bank,
Krung Thai Bank, and Arab Banking Corp.  (Bangkok Post  20-
Oct-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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