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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

             Thursday, October 26, 2000, Vol. 3, No. 209

                                       Headlines


* A U S T R A L I A *

BHP HPI: Steel price darkens outlook for HBI plant
EDGE: Founder and wife go bankrupt
EISA: Founder and wife go bankrupt
EVE.COM: To liquidate assets


* C H I N A  &  H O N G  K O N G *

COSCO INT'L: Shares slide 14% after blocked e-deal
PACIFIC CENTURY CYBERWORKS: Share price drops another 11.5%
PEARL ORIENTAL CYBERFORCE: HK$267M loss on hotel sales
SUZHOU ZHONGXING TELECOM.: Goes into voluntary liquidation


* I N D O N E S I A *

BANK DAGANG NASIONAL INDONESIA: Gov't probing owner
BANK MODERN: Gov't probing owner
BANK UMUM NASIONAL: Gov't probing owner
BANK UMUM SERVITIA: Gov't probing owner
TEXMACO GROUP: Hides offshore assets from workout?


* J A P A N *

DAIEI INC.: Restructure challenges mount as stock slides
SANYO ELECTRIC: Stock falls 10% after Pres. offers to quit


* K O R E A *

CENTRAL BANKING: To get public funds by year-end
DAEWOO MOTOR: Unable to meet payroll obligations
DAEWOO MOTOR: Slashes some senior execs
DONG AH CONSTRUCTION: To get fresh funds
H&S INVESTMENT BANK: To get public funds by year-end
KOREA MERCHANT BANKING: To get public funds by year-end
SAMSUNG GROUP: Affiliates riled at bearing Motors' debts


* M A L A Y S I A *

AMSTEEL CORP. BHD: US$4M claim allowed against it
IDRIS HYDRAULIC: Facing breach of contract suit
TRANSWATER CORP. BHD: Posts 1H pre-tax loss


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

ASB GROUP: Creditor banks ask SEC to reject debt extension
PHILIPPINE NAT.BANK: Bad loan ratio surges 39% in Sept.


* T H A I L A N D *

SIAM CEMENT PLC: Posts Q3 net loss
SIAM SYNTECH CONSTRUCTION : Posts Bt149.97M Q3 loss


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

BHP HPI: Steel price darkens outlook for HBI plant
--------------------------------------------------
BHP's problematic $2.5 billion hot briquetted iron (HBI)
project has been hit with another setback, with soft scrap
steel prices hampering demand for the company's output.

Several steel mills have reportedly expressed the view that
BHP's briquettes are too expensive and will not be able to
compete with cheaper, abundant scrap steel feedstocks.
One fund manager, who travelled recently to Asia, said
several of the world's biggest steel producers, including
Nippon Steel, had indicated that they would not purchase
BHP's HBI.

"Major steel companies will not be a buyer of BHP HBI,"
said the fund manager, who requested anonymity.

At an average price of $US120 to $US130 a tonne, HBI is up
to $US30 a tonne more expensive than scrap steel, at a time
when the scrap price is weakening as Asian steel mills come
under pressure to reduce production. Although steel
consumption has been forecast to rise by around 40 million
tonnes to 752 million tonnes in 2000, steel prices have
been under pressure from rising production and an
associated inventory build-up.

BHP's HBI is targeted at electric arc steel producers. But
with any downturn in the steel market, electric arc
furnaces typically suffer the brunt of the fall due to
their poorer economies of scale than blast furnace
operators. The weak appetite for BHP's HBI is another blow
for the project, which is already struggling to present a
viable business case in time to meet the December deadline
for a decision on the future of the project, which was set
by the company's chief executive, Mr Paul Anderson.

HBI business leader Mr Bill Walls is believed to have
sought an extension of the deadline, but has been told that
he must have a preliminary report on Mr Anderson's desk by
the beginning of November. But that may not be enough time
for the plant to achieve a sustained production rate
anywhere near the level needed to prove its viability.

To date, the longest production run has been 88 days. Only
two of its four processing trains are in operation. BHP
needs to be able to operate at least two of the trains at
about 75 tonnes an hour for 120 days to gain some
indication of commercial viability.  In light of the time
constraints, BHP may decide to close the HBI plant when the
board meets to consider the report in December, and take an
additional $1.1 billion charge against profits.

But despite the negatives, technically the HBI plant is
working well after $66 million was spent on water
technology trials. Two of the plant's four production
trains have been producing briquettes at commercial levels
of 175 tonnes an hour and BHP is confident of having a
third train online in November.

Some fund managers and analysts said that if the plant did
not require any extra capital, the BHP board might opt to
extend the deadline for a few more months in order to
better determine the project's commercial viability. "If
HBI can demonstrate that it's at least cash neutral, it
would be stupid to close it," Rothschild Australia Asset

Management associate director Mr Tim Barker said.
Despite the bearish indications coming from Asia, BHP
remains confident of forging a market for its HBI, having
already trialled all of the plant's 548,000 tonnes of
production with several steel mills. (Sydney Morning Herald
25-Oct-2000)

EDGE: Founder and wife go bankrupt
EISA: Founder and wife go bankrupt
----------------------------------
A year ago Jen-Tse Wang was at the top of the Australian IT
industry - the founder of Australia's biggest computer
wholesaler, Edge, and one of the most promising Internet
services, eisa. Tuesday, Jen-Tse (aka Johnson) and his wife
Siu Chui Lai (aka Phynia) were bankrupted in the Federal
Court following the collapse of both businesses.

Neither appeared in court after losing an earlier applica-
tion to give evidence by video-link from Hong Kong, where
they are thought to have resided with their children since
fleeing Australia in June. The couple's solicitor, Mr
Alexander Law, yesterday opposed the bankruptcy claim
brought by Armstrong Wily & Co, the liquidator for the Edge
Group, which folded in June with debts of more than $36
million.

The couple are probably personally liable for $30 million
to $40 million, but left behind less than $800,000 in net
assets, according to Armstrong. Mr Bernard Coles QC,
Armstrong's barrister, said the Wangs were "plainly
confronted by large liabilities" including $3 million
borrowed from two Edge companies. They "left the country
having made no effort to defray the liabilities" and with
no intention to return.

Neither had been in contact with the liquidator since June,
although Mr Law was in contact with Mr Wang by email.
Because the Wangs did not return to Australia for cross-
examination, their evidence was not considered in court. Mr
Law spent less than a minute responding to the claim,
saying only that evidence against the Wangs had been
"cobbled together."

Justice Richard Conti granted the bankruptcy claim, saying
the evidence against the Wangs was "overwhelming". He
awarded costs to be paid out of the Edge estate. The Edge
group was founded in May 1989 as an importer of monitors
and grew to become one of the biggest Australian PC
assemblers according to IT research group IDC.

At its peak in 1997-98, Edge sold $390 million worth of
computers - complete with Microsoft Windows. As one of
Microsoft's biggest customers, Edge enjoyed a special rate
for buying Windows. Edge was operating, however, on
incredibly thin operating margins, making only $1.3 million
profit that year.

Mr Wang supported the business by trading computer
components around the world. But prices fluctuated wildly
and the following year Edge could not afford to pay
Microsoft. Microsoft cut off Edge and in August sued for
$12.9 million in licence fees. Edge also faced a claim from
Samsung for $770,000.

At the same time Edge began to lose customers as brand-name
computers fell in price. In 1998-99, revenue crashed by 45
per cent to $214 million, and it suffered a loss of $3
million. By then Mr Wang apparently realised he was in deep
trouble and began to turn his focus to eisa, pouring money
into the fledgling Internet service. Early this year eisa
began to sell cheap Edge PCs subsidised by Internet
accounts, but it was too late.

The final Edge accounts show a loss of $3.5 million from
revenue of $52 million for the nine months to March.
At a March sales conference, Mr Wang announced that he
would resign as CEO of Edge and return to China to pursue
other Internet opportunities, Mr Coles said.

By April the Wangs were engaged in a "sell-down strategy"
caused by financial pressure from creditors. On June 7,
Wang appointed Armstrong as a voluntary administrator.
Armstrong now becomes the Edge trustee and will investigate
bank accounts and records. A full report is expected by
Christmas. (Sydney Morning Herald  25-Oct-2000)

EVE.COM: To liquidate assets
----------------------------
Online beauty retailer Eve.com is liquidating its
operations, reflecting the difficulty of making money
by selling fashion products to women via the Internet.

Eve.com, which is majority-owned  by Internet incubator
idealab!, has been struggling for some time and announced
earlier this month that it was reviewing its strategic
options, including extensive layoffs or outright
liquidation. The retailer sold gold jewelry, makeup
from such brand names as Laura Mercier and accessories such
as $125 Adrienne Vittadini handbags. Although the site
succeeded in luring shoppers, it never turned a profit.

On Friday, Eve.com said it would immediately lay off
most of its 164 employees. The company incurred a loss
on every order it delivered to customers. In recent months,
the retailer improved its gross margins and streamlined
its logistics so it was able to deliver a product for less
than it charged customers. But the improvement wasn't
enough to justify the site's continued existence, the
retailer said. The beauty segment has been one of the most
crowded arenas on the Web. (The Asian Wall Street Journal
24-Oct-2000)


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

COSCO INT'L: Shares slide 14% after blocked e-deal
--------------------------------------------------
Shares of Cosco International Holdings fell more than 14
percent yesterday on news the company had failed to win
minority shareholder approval for its proposed HK$886
million purchase of e-logistic service provider Cosco
Network.

The company on Monday said more than 50 per cent of
minority shareholders voted against its proposal to buy
Cosco Network from its ultimate parent China Ocean Shipping
(Group). As a result, the proposed acquisition was termina-
ted.  The news led the stock down from 90 HK cents to 77 HK
cents yesterday.

Analysts said the drop in the share price was not
unexpected.  Investors had bought the stock on the back of
the acquisition news and it was sensible that they sold it
when the deal was called off, they said.  Cosco
International is the property and construction arm of China
Ocean Shipping, the mainland's largest shipping company.
The company has also moved into infrastructure and
environmental protection.

Last month, the company announced that it had agreed to pay
HK$886 million for a 99.09 per cent interest in its 0.91
per cent-owned Cosco Network. Under the agreement, the deal
was subject to minority shareholder approval.  The proposed
purchase - which was the first move by China Ocean Shipping
to transform the company into a technology flagship - was
originally planned to be financed by an issue of 973.63
million new shares.

This represented 41.33 per cent of Cosco International's
enlarged issued share capital.  Analysts said the stock was
expected to be inactive in trading for a while, awaiting
for positive news which would bolster the company's
earnings momentum. (South China Morning Post 25-Oct-2000)

PACIFIC CENTURY CYBERWORKS: Share price drops another 11.5%
-----------------------------------------------------------
Once the darling of the stock market, the share price of
Richard Li Tzar-kai's Pacific Century CyberWorks (PCCW)
plunged another 11.5 percent Tuesday to close at $5.75
despite a US$1.8 billion (HK$14.04 billion) rescue package.

"Investors are turning their backs on Richard Li's baby and
walking away in droves," one analyst said. The stock has
lost 80 percent of its value since its peak of $28.50 in
February and could still fall further.

On Monday, PCCW announced that, in a move to ease its debt
burden, the company would raise up to US$1.8 billion
through the sale of convertible bonds and new shares. Mr Li
plans to buy US$500 million of the US$1.3 billion bond
issue and companies he controls will underwrite the US$500
million share sale.

Analysts said he may end up with much of the new stock
himself as they do not see investors taking up the offer of
three new shares for every 100 existing ones at $6.50 each.
Mr Li, who already owns about 38per cent of PCCW, pocketed
$3.97 billion in August by selling 240 million CyberWorks
shares at $15.81 each.

But for the ordinary investor Mr Li's company has fallen
way short of their expectations.  Mr Wong, 60, a retired
journalist from Lok Fu, bought shares in Cable&Wireless HKT
10 years ago. "I bought the [PCCW] stock when it was at
$14, $9, $8 and $7," said Mr Wong. "I'm still holding
several thousand shares now. But I'm not satisfied with the
company's decision. Richard Li has not handled the
situation very well. When companies merge, the shares
should rise, not fall."

Stephen Wong, 42, a construction worker from Lok Fu bought
several thousand shares at $8 each.  "I knew [PCCW] was
issuing new shares, but I didn't know the details," said Mr
Wong. "I think I'll keep the shares, but I'm not going to
buy any more. What is happening doesn't look good for me.
The stock is dropping."

Ms Wong, 30, a marketing executive in Lok Fu bought 10,000
shares at $16.  "It was my first venture in the stock
market," she said. "I knew nothing about the company and I
just followed a friend's advice. Now I would sell the lot -
if I could get $10 a share."  (South China Morning Post 25-
Oct-2000)

PEARL ORIENTAL CYBERFORCE: HK$267M loss on hotel sales
------------------------------------------------------
Pearl Oriental CyberForce Ltd., a property developer that
sought to diversify into information technology, will
record a HK$267 million net loss on the sale of two Hong
Kong hotels for HK$338 million.

To be sold are its Pearl Garden Hotel and Pearl Seaview
Hotel, which have a combined net book value of HK$600
million. The pair will be sold to two units of Far East
Consortium International Ltd. Pearl Oriental said it would
book the loss in accounts for the year ending Dec. 31.

Of the sale proceeds, the company will use HK$230 million
to repay the two hotels' secured bank loans, with the
balance being used for general working capital. The sales
are in line with Pearl Oriental's goals of ridding itself
of real property so as to reposition itself for the
technology and telecommunications industries, as well as
reducing the company's debt load, according to Chairman
Wong Kwan in a written statement.

SUZHOU ZHONGXING TELECOM.: Goes into voluntary liquidation
----------------------------------------------------------
Suzhou ZhongXing Telecommunication Engineering Development,
70 percent of which is owned by Singapore Telecom
(SingTel), is in voluntary liquidation. The liquidation
follows an agreement between China United Telecommunica-
tions and Suzhou Zhong-Xing to terminate their agreement
for cooperation in Unicom's Suzhou GSM project as a result
of changes in the regulatory environment in China.


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

BANK DAGANG NASIONAL INDONESIA: Gov't probing owner
BANK MODERN: Gov't probing owner
BANK UMUM NASIONAL: Gov't probing owner
BANK UMUM SERVITIA: Gov't probing owner
---------------------------------------------------
Indonesia signalled its intention to crack down on bosses
of failed banks yesterday, naming timber tycoon Mohamad
"Bob" Hasan and two other businessmen as suspects in probes
over the collapse of their financial institutions.

Hasan, former president Suharto's golf buddy and already on
trial for graft, was named over the suspected misuse of
US$1.3 billion (S$2.3 billion) in emergency credits
extended to his now defunct bank, the attorney-general's
spokesman, Yushar Yahya, said.  The three join another
leading tycoon and major debtor to the state, Syamsul
Nursalim, who on Monday was declared a suspect in a similar
probe over the collapse of Bank Dagang Nasional Indonesia
(BDNI).

Many former owners of failed banks were close to Suharto.
The banks received nearly 200 trillion rupiah (S$39
billion) from the central bank in a largely failed attempt
to prop up the sector at the height of the Asian financial
crisis in the late 1990s.  "Bob Hasan is a suspect over the
suspected misuse of liquidity credits at his BUN (Bank Umum
Nasional) worth 12 trillion rupiah," Mr Yayha told Reuters.

He said Mr Nursalim had been named a suspect over losses to
the state of 7.2 trillion rupiah caused by the central bank
liquidity credits being funnelled to BDNI, which was part
of the Gajah Tunggal Group he heads. The other two, lower-
profile, businessmen were Samadikun Hartono of Bank Modern
and Wiryatim Nusa of Bank Umum Servitia. Both banks have
also been shut.

The amount of emergency funds suspected of being misused at
those banks was unclear. Of the four, only Hasan is in
detention.  Hasan, once one of the country's most powerful
men, has taken a steep fall from grace since Suharto
stepped down in May 1998 amid widespread political and
economic chaos. He is currently being tried for allegedly
causing US$240 million in losses to the country for failing
to carry out a major forestry mapping project.

He could face life in jail if convicted, although it was
unclear if he could be questioned over the bank failure
while the separate graft case was under way. He has denied
any wrongdoing over the mapping project.  Under Suharto's
iron rule, Hasan built a massive business empire, although
his first love was timber, an industry he largely
controlled.

Some banks that benefited from the central bank liquidity
credits are still operating, although they are under the
control of the powerful Indonesian Bank Restructuring
Agency (Ibra).  Former bank owners have pledged huge
amounts of assets to Ibra to cover repayment of the
credits, but officials say these assets have since lost
much of their market value. (Business Times  25-Oct-2000)

TEXMACO GROUP: Hid offshore assets from workout?
------------------------------------------------
Three weeks before signing a $2.7 billion debt accord with
a government body, Indonesia's Texmaco Group sold its 60%
share in Trevira GmbH, an affiliate of Germany's Hoechst AG
(G.HFA), and pocketed the proceeds.

The Indonesian Bank Restructuring Agency, which inked the
accord Sept. 30, is now investigating whether Texmaco
shielded Trevira from its creditors, opening up another
front in a bruising battle over the company's future.
An IBRA official said Tuesday that Texmaco's owner,
Sinivasan Marimutu, had declared Trevira as a group-owned
asset during debt talks but hadn't informed the agency of
its disposal.

"We did not receive any information from them regarding
this sale," said Raymond Van Beekum, corporate secretary of
loan recovery.

Under the debt accord, the country's largest-ever corporate
debt workout, all assets held by Texmaco and its owner,
Sinivasan Marimutu, are transferred to a new holding
company run by IBRA while the group repays its debt over 12
years.  The owners would then regain the group's assets in
full.  Any offshore asset declared by Texmaco, a textiloe
and engineering concern, is required to be transferred to
the holding company, Van Beekum said.

The revelation that Texmaco stripped assets prior to the
accord signing will fuel fears that IBRA's oversight role
will be insufficient to block interfernce by the original
owners. It also raises questions about the resolve of IBRA
- and Indonesia - to force debtors to surrender assets
including offshore companies and affiliate units.

Analysts have already chided Texmaco's debt deal as a
bailout that adds to the country's huge public debt burden.
The World Bank and International Monetary Fund last month
wrote to economics chief Rizal Ramli to urge a rethink of
the accord.  In particular, critics say the agreement
offers no up-front payment to IBRA, which is under pressure
to raise money from sales of assets and loans to plug
Indonesia's budget deficit.

Last month, a unit of Deutsche Bank AG (G.DBK) agreed to
finance a management buyout of Trevira from European Fiber
Industries B.V., a unit of Texmaco's Multikarsa Investama
for an undisclosed amount.  Trevira, which is 40%-owned by
Hoechst, is Europe's largest polyester fiber maker with
$350 million in sales in 1999, said spokeswoman Steffi
Bobrowski.

"The reason for the deal was partly the financial problems
of the Indonesian company," she said.

Joydeep Mazumder, head of investor relations for Texmaco,
denied knowledge of European Fiber Industries and the
Trevira disposal.  "I don't know anything about this," he
said.

A spokesman for DB Investor, the private equity arm of
Deutsche Bank, Dr Ronald Weichert, said part of the
proceeds of the acquisition would go to European Fiber
Industries.  "In principle, they will receive the money,"
from the disposal, he said.

Texmaco acquired the majority stake in Trevira in May 1998
during a period of political chaos and huge capital flight
from Indonesia.  Prior to the purchase, Indonesia's central
bank extended over $1 billion in emergency loans to
Texmaco, ostensibly to finance its export activities.

According to documents obtained by Dow Jones Newswires, $40
million was transferred Feb. 11, 1998 from Multikarsa to
Sinivasan's personal account in Morgan Stanley Bank in
Frankfurt. The Trevira acquisition was completed three
months later.

Texmaco was thrust into the limelight last November when
former minister Laksamana Sukardi accused the group of
colluding with former President Suharto to obtain the
emergency loans, which were then used to repay debt
and fund offshore investments.  Sinivasan denied
wrongdoing, and an investigation by the attorney general
was later dropped, amid complaints over possible
interference by President Abdurrahman Wahid, who has called
Texmaco a "national asset" that should be preserved.

As well as restructuring its debt owed to IBRA, Texmaco is
also trying to reach terms with private creditors who are
owed around $1.7 billion. Texmaco's flagship PT Polysindo
Eka Perkasa (P.PEP), a polyester company, issued $1.1
billion worth of foreign-currency paper to fund expansion
in the 1990s, only to default on the debt in  1998.
(Indonesian Daily News On Line  25-Oct-2000)


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

DAIEI INC.: Restructure challenges mount as stock slides
--------------------------------------------------------
Shares of Japanese supermarket chain Daiei Inc. have lost
30% of their value this month after a scandal that led to
the resignation of its top executives. But analysts say
that Daiei's stock is one apparent "bargain" that shoppers
should avoid.

Daiei's slide is yet another example that Japanese
executives all too often prefer to nurse unprofitable
operations in hopes that they'll somehow revive, rather
than cutting them off, only to see their companies wither
away. Daiei's shares have steadily lost 94 percent of their
value since their peak in 1989.

The company has amassed group debts totaling 2.47 trillion
yen ($22.69 billion), by expanding its businesses too
aggressively during the economic bubble of the 1980s. But
while the clock is ticking, Daiei hasn't been able to
convince investors that it has a feasible restructuring
roadmap. Among the key obstacles to a hard-nosed
restructuring, analysts say, may be 78-year-old Isao
Nakauchi, the very man who founded the nation's biggest
retail empire.

The most recent fiasco surfaced earlier this month, when
Daiei President Tadasu Toba, who was spearheading the
company's crucial restructuring plan, abruptly resigned
over a scandal involving trades he made in a Daiei unit's
stock. Japanese media reports said Mr. Toba's plans were so
hard-nosed that he clashed with Mr. Nakauchi. A Daiei
spokeswoman denies there were clashes, adding that Mr. Toba
resigned to take responsibility for the scandal.

Daiei stresses that the company will continue to
restructure in earnest, appointing an acting president
until Mr. Toba's official replacement takes over next year.
But some analysts are fed up.

"The challenges are mounting. This is no time for such
turmoil," says Toshiko Binder, an analyst with HSBC
Securities in Tokyo.

Ms. Binder is reducing her Daiei rating to sell from
reduce -- and is planning to drop coverage of the company
altogether.  On Monday, Daiei's shares rose 2%, or four
yen, to 206 yen.

Daiei's troubles are a stark contrast from its go-go days
a decade ago, when the company snapped up rival supermar-
kets and saw its shares trade as high as 3,460 yen in 1989.
But as Japan's economic bubble burst and the country fell
into a recession, Daiei got hit with falling sales and
a mountain of debt. Along with Mr. Toba, Mr. Nakauchi
also resigned as chairman this month and is expected
to step down from the board next year, though some analysts
question whether he'll really cede control.

There were plenty of things that Daiei could have done
to reduce its problems over the years. The group still
has a laundry list of noncore assets that it could sell
-- hotels, real-estate companies, a baseball team and a
baseball stadium, to name a few. But even at this late
date, it isn't clear how serious Daiei is about slimming
down. Many of the assets are currently listed under a
separate holding company called Daiei Holding Corp., in
which members of the Nakauchi family have a controlling
stake.

To be sure, Daiei has sold some assets to service its
debt, such as the Ala Moana Shopping Center in Hawaii
and shares of publishing company Recruit Co. It also listed
shares of Lawson Inc., its convenience store chain. But
the weak stock market led to disappointing results:
Lawson's shares debuted well below their pre-market price,
leaving Daiei with 353 billion yen in proceeds -- 108
billion yen short of its initial estimates.

In addition, Daiei could get more serious about
restructuring its all- important core business: its 314-
store supermarket chain. The company says that 62 of
its stores are now unprofitable -- some analysts think the
number is even higher. In the first six months ended Aug.
31, Daiei's pretax profit was a meager 1.55 billion yen
on a parent basis, on sales of 995 billion yen. The company
doesn't report its half-year consolidated results.

Daiei says it is closing 13 stores this year ending
February, well short of the 62 that are unprofitable.
Instead, it says its focus is on trying to revamp poor-
performing stores by refurbishing them. Masumi Mizusawa, an
analyst with Dresdner Kleinwort Benson, says that may not
be enough, especially as competing supermarkets are doing
much more.

Rivals like Jusco Co. are aggressively closing down old
stores and building more attractive, modern stores, she
says in a recent report. "We are doubtful whether Daiei's
superficial renovations will have quite the same impact,"
she concludes.

Meanwhile, times are going to get tougher and tougher
for Daiei. Personal consumption remains sluggish, and
Japan's retail market is teeming with new, more-modern
retail formats that offer better bargains. For example,
Fast Retailing Co., an enormously successful casual-
clothing retailer known for selling 1,900-yen fleece
jackets and dress shirts, has been luring away customers
who would otherwise have bought clothing at supermarkets
like Daiei.

As Daiei's woes drag on, some industry observers say that
the company may eventually have to ask for massive debt
forgiveness from its four main banks, or even declare
bankruptcy. But the Daiei spokeswoman says that's just
speculation. Debt forgiveness is usually for companies that
are insolvent, she says. "We're not insolvent."  (The Asian
Wall Street Journal  24-Oct-2000)

SANYO ELECTRIC: Stock falls 10% after Pres. offers to quit
----------------------------------------------------------
Sanyo Electric Co. stock fell as much as 10 percent the day
after President Sadao Kondo offered to resign, a showing of
taking responsibility for the Osaka-based company's sales
of defective solar panel systems for homes.

Kondo yesterday told Sanyo chairman and founder Satoshi Iue
he will resign after the company disclosed on Friday that
some solar systems sold by a subsidiary between 1996 and
March 1998 didn't meet standards for electrical output.
Sanyo has offered to replace the defective parts at a cost
of 500 million yen ($4.6 million). The 500-million-yen cost
to replace defective solar batteries won't hurt the
company's overall earnings, according to most analysts.

The departure of Kondo may discourage investors, however,
who have seen the company post a trail of successes after
Kondo implemented a three-year restructuring plan in April
1999. Shares fell 100 yen, its daily trading limit, to 891
at the end of morning trade. That was down from 1,047 yen,
at which the shares peaked on Oct. 5, and their highest
close since Jan. 4, 1990. The shares are still up 115
percent so far this year.


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

CENTRAL BANKING: To get public funds by year-end
H&S INVESTMENT BANK: To get public funds by year-end
KOREA MERCHANT BANKING: To get public funds by year-end
-------------------------------------------------------
Finance and Economy Minister Jin Nyum has confirmed that
three merchant banks currently suspended from doing
business -- Korea Merchant Banking, Central Banking and H&S
Investment Bank -- will receive injections of public funds
by the end of the year.  He added that the competitiveness
of five merchant banks in operation would be bolstered
through mergers and recapitalization.

As for companies in danger of insolvency due to liquidity
problems, their main creditor banks will rate their credit
risks by the end of this month prior to debt-for-equity
arrangements to keep them open or complete closures, he
said.

DAEWOO MOTOR: Unable to meet payroll obligations
------------------------------------------------
In the midst of a severe cash crunch, Daewoo Motor will not
be able to pay its administrative staff their October
salaries on schedule, making for the second straight month
that these employees have not been paid.

In addition, these workers will not receive a regularly
scheduled bonus amounting to 100% of their monthly salaries
due to be paid this month. The creditors group of Daewoo
Motor said Tuesday that there are no plans to provide
additional funds to the firm to help it meet its payroll
obligations.

This brings the total amount the firm owes in back pay to
W100 billion. In total, this figure includes an August
bonus for the entire staff, the September and October
salaries of administrative staff, and production staff
salaries that were due to be paid October 10. (Digital
Chosun  24-Oct-2000)

DAEWOO MOTOR: Slashes some senior execs
---------------------------------------
Financially troubled Daewoo Motor Co. implemented a 30
percent cut in senior executives at home and abroad as a
part of its restructuring efforts.  The company closed down
17 bureaus led by senior executives and reduced the number
of senior executives from 135 to 95. The actions followed
the trimming of 48 senior executives in August 1999 and 45
more in January this year.

Daewoo confirmed it plans additional staff cuts and
business restructuring measures later this month. The
number of Daewoo Motor employees who quit their jobs
totaled 95 in September, up from 48 in August. The company
has approximately 19,000 assemblyline and office workers.

DONG AH CONSTRUCTION: To get fresh funds
----------------------------------------
Creditors of Dong Ah Construction plan to inject fresh
funds totaling 304.9 billion won (US$347 million) into the
cash-strapped builder, as well as lower interest rates on
its loans to three percent from seven percent.

Formal approval of the actions by creditors is expected at
a meeting on Monday or Tuesday next week. Creditors also
are expected to ask an accounting firm to evaluate the
financial stability of Korea Express, a Dong Ah affiliate
that has extended billions of won as payment guarantees to
Dong Ah, but which is not meeting its own responsibilities.

SAMSUNG GROUP: Affiliates riled at bearing Motors' debts
--------------------------------------------------------
Subsidiaries of the Samsung Group will have to bear the
burden of paying off its motors division's debt it was
reported Tuesday.

Meanwhile, the listing of Samsung Life Insurancem, from
which owner Lee Keun-hee was going to sell his share to pay
off outstanding loans, has been delayed. The listing of
Samsung Life had been decided on in September 1999, and any
shortfall in the value of Lee's stock was to have been made
up for from non-listed Samsung companies such as Everland.

Samsung headquarters had planned to parcel out the motor
company's debt to healthy listed subsidiaries. However,
shareholders at the affiliates and management are known to
be furious at the proposed transfer.

At a press conference Choi Do-seok, vice-president of
Samsung Electronics said that the company was taking legal
action against the headquarters which wants the firm to
shoulder 35 percent of Samsung Motors' W2.45 trillion
outstanding debt, or W857.5 billion. In addition the
headquarters wants the profit making electronics
manufacturer to shoulder an annual delayed interest payment
of 19 percent or W162.9 billion, on top of the W203.7
billion it has already paid in the first half.

Creditor banks are known to be considering taking legal
action to take possession of Lee's stake in Samsung Life
Insurance if the company is not listed by the end of the
year and 3.5 million of his 4 million shares sold at a
value of W700,000 each. They plan to sell the shares and
will seize more if the price does not cover Samsung Motors'
debt.

Small shareholders and the Peoples Coalition for Economic
Justice (PCEJ) support Samsung Electronics' management and
will put their 0.25% holdings in the company behind a class
action in tandem with Choi's action. (Digital Chosun  24-
Oct-2000)


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

AMSTEEL CORP. BHD: US$4M claim allowed against it
-------------------------------------------------
Amsteel Corp. Bhd has confirmed that the Senior Assistant
Registrar of the Kuala Lumpur High Court has allowed Bank
of Tokyo-Mitsubishi Ltd (Labuan Branch) to enter a summary
judgment under Order 14 of the Rules of the High Court
(1980) against the company on the bank's claim of
US$4.035mil (RM15.332mil), together with commission
charges, interest and costs.

The figure was the amount outstanding under the Standby
Letter of Credit Facility of RM15mil granted by the bank to
Amsteel.  Amsteel said it had instructed its lawyer to
submit an appeal against the Senior Assistant Registrar's
decision and an application to stay execution of judgment. (Bernama, Star
Online  25-Oct-2000)

IDRIS HYDRAULIC: Facing breach of contract suit
-----------------------------------------------
Malaysian tycoon Ishak Ismail is suing Idris Hydraulic Bhd
for an alleged breach of contract after he lost control of
the timber, property and insurance group to a nephew of the
nation's finance minister.

Mr Ishak, an ally of former finance minister Anwar Ibrahim,
escalated a month-long boardroom tussle at the company,
charging that Idris had failed to live up to its agreement
to sell him 30 percent of its cash-rich Prime Utilities Bhd
unit.  The row underscores the turmoil in parts of
corporate Malaysia that is leaving shareholders at the
mercy of the haggling between executives, and is pulling
down share prices.

The tug-of-war is likely to delay efforts by Idris to cut
its debt, and yesterday dragged its shares three sen, or 12
per cent, lower to 22 sen. Prime shares fell 6 sen, or 3.5
per cent, to RM1.92.

"They have to draw a line between self and shareholders'
interest," said Chong Sui San, who helps manage RM800
million (S$369 million) at Malaysia British Assurance Bhd.
"They can't be squabbling in public for so long."

At the centre of the latest twist to the ongoing saga is an
agreement in August by Idris to sell shares of Prime, a
former sewerage contractor, to closely held Utusan Jutabina
Sdn, controlled by Mr Ishak, for RM110 million.  Idris, now
run by Annuar Senawi, a nephew of Finance Minister Daim
Zainuddin, claims the pact was "invalidated" because it did
not include certain conditions.

The battle is unlikely to help Idris, which is struggling
to reorganise, repay RM782.2 million in debt and return to
profit.  Idris's loss narrowed to RM111.95 million in 1999,
from the previous year's RM203.8 million. Utusuan "has
replied via a letter that the agreement is not invalid and
remains afoot", said Prime in a statement. Utusan is suing
Idris, seeking "specific performance" of the agreement, it
said.

Last week, Idris said it is seeking to remove Mr Ishak from
the board of Prime, in part because Mr Ishak was seen as
frustrating Idris's efforts to reorganise its investments.
Idris is pushing its Prime unit to buy a substantial stake
in KFC Holdings Bhd, Malaysia's biggest fast food chain, to
boost earnings. Mr Ishak opposes the proposal.

Idris wants to call a meeting of Prime's shareholders on
Dec 4 to remove Mr Ishak and five other directors on
Prime's current board of 10, said Garry Prior of Celadon
Capital Group, an adviser to Idris, in an interview
yesterday.

"It is my hope" that the meeting will be held in December,
he said. He declined to comment on the lawsuit by Mr Ishak
but said Idris will seek to appoint a total of seven new
directors to the Prime board.

In August, Idris announced a plan to reduce its capital and
sell assets to repay debt. It plans to sell assets over
five years to raise RM500 million and keep its insurance
business as its main earnings driver.  Mr Annuar will also
inject RM150 million into the company to become its
largest shareholder. (Business Times  25-Oct-2000)

TRANSWATER CORP. BHD: Posts 1H pre-tax loss
-------------------------------------------
Transwater Corp Bhd recorded a pre-tax loss of RM1.094
million for the six-month period ended Aug 31. By
comparison, the company posted a RM712 million pre-tax
profit for the same period the prior year. Turnover
decreased to RM36.96 million from RM39.386 million in the
prior year's first half. For the second quarter ended Aug
31, Transwater incurred a pre-tax loss of RM1.422 million,
compared to a pre-tax profit of RM1.884mil for the second
quarter the preceding year. Turnover for the quarter fell
to RM19.269 million, down from RM28.979 million.



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

ASB GROUP: Creditor banks ask SEC to reject debt extension
----------------------------------------------------------
Metropolitan Bank & Trust Co. and Allied Banking Corp. have
asked the Securities and Exchange Commission to thumb down
the request of the cash-strapped ASB Group of Companies for
extension of the debt moratorium to allow them to institute
foreclosure proceedings against the group's assets.

The ASB Group last week asked that the loan payments
suspension order be extended for another 60 days or until
Dec. 30 pending submission of comments by all creditors on
the proposed rehabilitation plan. Without an extension,
creditors of the ASB Group can start foreclosing on the
ailing firm's assets.

The extension of the suspension order, which expires on
Oct. 31, will also give the SEC ample time to decide
whether to approve or disapprove the ASB Group's proposed
recovery program.  Owned by property developer Luke Roxas,
ASB Holdings sought refuge from the SEC for the payment of
its over P5 billion in debts owing to severe cashflow
problems resulting from the sudden pretermination of
investments of its clients.

Allied Banking, the second largest unsecured creditor of
the ASB Group, has joined the other banks that have
objected to the petitioners' proposed rehabilitation plan
which called for dacion en pago of certain properties to
retire its debts. It said the values assigned by the
petitioners to the properties being decioned are not
realistic and not in consonance with the current appraisal
of the bank based on the present property valuation of the
lot.

Other banks that have questioned the feasibility of the
corporations' proposed rehabilitation plan are the
Philippine National Bank, United Coconut Planters Bank, Far
East Bank & Trust Co., and the Development Bank of
Singapore.

In a separate filing with the SEC, UCPB said the plan is
not comprehensive as it failed to address material and
relevant matters pertaining to the financial statements of
petitioners. It said the plan includes adjustments to the
financial statements which are not acceptable under the
general accepted accounting principles and are "not
realistic but are manipulations intended to conceal the
financial condition of petitioners." (Manila Times  25-Oct-
2000)

PHILIPPINE NAT.BANK: Bad loan ratio surges 39% in Sept.
-------------------------------------------------------
Philippine National Bank (PNB), the country's fifth largest
bank in terms of assets, saw its higher non-performing
loans surged to 39 percent of its total loans at the end of
September.

PNB reported that in addition to nonperforming loans which
totaled P42.174 billion, it also incurred loan losses of
P16.903 billion.  The bank's total assets reached P182.424
billion as of September, while the bank's total capital
accounts stood at P13.007 billion.


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

SIAM CEMENT PLC: Posts Q3 net loss
----------------------------------
Siam Cement Plc (SCC) and its subsidiaries posted an
unaudited net loss of Bt687.90 million in the third quarter
of 2000, compared to a Bt9.46 billion loss in the third
quarter last year amid a strong rise in both local sales
and exports.

As a result, the group recorded a net per share loss of
Bt5.73 in the third quarter, against Bt78.87 in the same
period last year.  The company reported in a filing to the
Stock Exchange of Thailand that it recorded a net profit of
Bt416.09 million for the first nine months of this year,
compared with a net loss of Bt7.24 billion in the same
period last year.

Boosted by strong performances from its petrochemicals and
paper businesses, Siam Cement Group and its subsidiaries
posted consolidated revenue of Bt36.603 billion in the
third quarter, up 19 per cent over the same period of 1999.
SCC president Chumpol Na-Lamlieng attributed the revenue
growth to an increase of 17 per cent in domestic sales and
31 per cent in exports. An increase in demand for
petrochemicals and paper products mainly contributed to
Siam Cement's higher revenues, he added.

Chumpol said the company's cement, petrochemicals and paper
businesses were the main engines behind the net profit of
Bt416 million in the first nine months of this year. That
compares with a net loss of Bt7.245 billion for the same
period last year.  The group also booked a smaller foreign
exchange loss - Bt2.388 billion compared to Bt12.153
billion in 1999.

A series of foreign-currency debt repayments reduced Siam
Cement's foreign debt to US$840 million (Bt36.8 billion),
or 20 per cent of total debt.  The company's total foreign
debt had reached $4.5 billion in the period before the
economic crisis struck.

In the first nine months of this year, Siam Cement recorded
net sales growth of 27 per cent over the same period of
last year while EBITDA (earnings before interest, tax,
depreciation and amortisation) increased 13 per cent, led
mainly by the petrochemical and paper businesses.  Sales of
the cement business reached Bt17.43 billion in the first
nine months, a slight drop of 0.2 per cent against the same
period last year.

Total sales of petrochemical products hit Bt30.05 billion
in the same period, up 86 per cent from last year due to
the buoyant performance of Rayong Olefins Co Ltd. Siam
Cement's paper business recorded 29 per cent higher sales
than in the first nine months of last year to reach Bt20.16
billion, buoyed largely by the improved sales of
printing/writing and in-dustrial paper and packaging
products.  (The Nation  26-Oct-2000)

SIAM SYNTECH CONSTRUCTION : Posts Bt149.97M Q3 loss
---------------------------------------------------
Siam Syntech Construction reported an audited net loss of
Bt149.97 million for the third quarter of its fiscal year
which ends March 31, down substantially from a Bt1.04
billion loss for the same period last year.

For the first nine months of the year, the company posted a
loss of Bt585.47 million. That compared with a loss of
Bt1.72 billion for the same 9-month period last year.
Syntec attributed its lower net losses to a reduction in
cost of sales and services, unrealized losses on impairment
of securities and share of loss from related parties.


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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