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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, November 3, 2000, Vol. 3, No. 215

                                    Headlines


* A U S T R A L I A *

HEYTESBURY GROUP: Facing adverse $55M court ruling
LEND LEASE: May be forced to make further writedowns
SUNDOWNER GROUP: Shareholders challenge restructure


* C H I N A  &  H O N G  K O N G *

GUANGDONG ENTERPRISES: Debt rehab plan in final phase


* I N D O N E S I A *

PT ASTRA INT'L: In the red with 272.8B rupiah loss
PT BARITO PASIFIK: Debt rehab transerred to JITF
PT BUNAS FINANCE INDO.: Court OKs 40-day debt moratorium
PT CHANDRA ASRI: IBRA seeking collateral for debt
PT DAYA GUNA SAMUDRA: Debt rehab transerred to JITF
PT PINTUNI: Debt rehab transerred to JITF


* J A P A N *

AKAI ELECTRIC CO.: Files for court protection


* K O R E A *

CHEJU BANK: To be placed under holding company
DAEWOO MOTOR: Main creditor rejects rescue plan
HANVIT:  To be placed under holding company
HYUNDAI ENGIN.& CONSTR.: Bracing for court receivership
JINDO: Creditors to put up for sale
KWANGJU BANK: To be placed under holding company
PEACE BANK: To be placed under holding company


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

DBP DAIWA SECURITIES: Linked to Reynolds stock scam
FIRST ORIENT SECURITIES: Linked to Reynolds stock scam
GUILD SECURITIES INC.: Linked to Reynolds stock scam
INTRA-INVEST SECURITIES: Linked to Reynolds stock scam
JAKA SECURITIES CORP.: Linked to Reynolds stock scam
MAGNUM INT'L SECURITIES: Linked to Reynolds stock scam
MARK SECURITIES CORP.: Linked to Reynolds stock scam
UPCC SECURITIES CORP.: Linked to Reynolds stock scam
VICTORIAS MILLING CORP.: SEC seen as giving nod to rehab
WESTMONT INVEST.CORP.: SEC pushes legal action vs. execs


* S I N G A P O R E *

CENTRAL PROVIDENT FUND TRUSTS: 80% have negative returns


* T H A I L A N D *

BANGKOK STEEL INDUSTRY: Merger planned to cut money loss
MEDIA OF MEDIAS: Files rehabilitation plan
NAKORNTHAI STRIP MILL: Gets 30 more days for rehab plan


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

HEYTESBURY GROUP: Facing adverse $55M court ruling
--------------------------------------------------
After a decade of restructuring the $1 billion empire she
inherited from her late husband, Robert Holmes … Court,
Perth businesswoman Mrs Janet Holmes … Court faces another
financial calamity.

Despite achieving more than $500 million in asset sales,
which have helped placate the bankers who came close to
foreclosing on the Heytesbury group in late 1991, Mrs
Holmes … Court's family company now faces losses of more
than $55 million resulting from an adverse legal ruling.

The $40 million damages ruling - compounded by legal costs
of at least $15 million - stems from a long-awaited
international arbitration ruling which has shocked the
family. The Heytesbury board had been confident of a
favourable decision, which would have delivered the Holmes
… Court family a cheque of similar magnitude to the one
that must now be written out.

The added tragedy for Mrs Holmes … Court is that the legal
decision which has shaken Heytesbury has nothing to do with
any of the businesses which she and her four children
inherited when her entrepreneur husband died in
September 1990. The John Holland construction and
engineering group - which was this week ordered by a
Canadian arbitration court to pay a Japanese construction
giant, Toyo Engineering Corp, what is believed to be
$40million - was the first corporate acquisition made by
Mrs Holmes … Court when she assumed control of the debt-
ridden Heytesbury empire in 1990.

While the fundamentals of the John Holland acquisition
looked sound on paper, with the prospects of strong cash
flow from a peppercorn cash outlay, it proved a financial
albatross which has returned to haunt Heytesbury. Mrs
Holmes … Court sold a 70 per cent stake in John Holland to
Leighton Holdings in January. But as both Heytesbury and
Leighton reiterated in statements yesterday, the Holmes …
Court company provided warranties and indemnities to
quarantine the purchaser from an adverse decision in the
Toyo arbitration matter.

The arbitration case involved a year of secret hearings in
Vancouver and Singapore in 1998. After a frustrating wait,
it ended in this week's ruling in Toyo's favour. Heytesbury
is understood to have spent between $15 million and
$20million on legal fees pursuing the matter, costs which
were capitalised in Heytesbury's accounts.

The Canadian arbitration decision related to a 1996 dispute
at a $250 million construction project at Mobil Oil's
Altona refinery near Melbourne, where John Holland's
contract to build a $50 million catalytic cracker unit was
terminated by Toyo, the project manager. Although the
company's accounts are private, the total hit of at least
$55 million is a serious blow to Heytesbury's financial
position.

It will have ramifications for Mrs Holmes … Court's sons,
Paul and Simon, as they seek to follow their older brother
Peter in eventually exiting Heytesbury to pursue their own
commercial interests. However, Mrs Holmes, … Court
suggested yesterday that Heytesbury had sufficient cash
reserves to pay Toyo without having to sell any more
assets.

"Although disappointed with the result, we can meet the
decision from existing cash reserves without any impact on
our operations and without the need for further asset
sales."

Strict confidentiality arrangements precluded her from
disclosing details of the arbitration decision, including
confirmation of the amount of damages John Holland had been
ordered to pay Toyo, she said. "The international
arbitration, under the auspices of the International
Chamber of Commerce, began over two years ago. We are
currently considering the judgement, however our
contingency planning allowed for a range of outcomes."

Heytesbury had indicated to The Australian Financial Review
before this week's decision that the arbitration outcome
was binding and not open to appeal, although the company's
lawyers are continuing to review the Canadian judgement.

The contingency planning referred to by Mrs Holmes … Court
involved setting aside some of the proceeds from the
$220million sale in January of Heytesbury's Stoll Moss
theatre chain in London. But having lost its cash-cow with
the Stoll Moss sale, Heytesbury has now lost its cash.

The company's other assets include the Vasse Felix winery
in Western Australia's Margaret River region, the
Heytesbury Stud property, a boutique office and residential
development in West Perth, a residual 30 per cent of
John Holland and the Heytesbury Beef pastoral division. The
group also owns valuable collections of art and classic
cars.

Mr Peter Holmes … Court, who has just returned from New
York to become chief executive of the Australian
Agricultural Co, said yesterday that the Toyo decision
would not affect the agreement he reached with his mother
earlier this year to quit his 16 per cent stake in
Heytesbury.

His shares were sold to RM Investments - a private,
offshore vehicle backed by Mrs Holmes … Court, her London-
based daughter Catherine Mather and Catherine's businessman
husband, Rob Mather. Although that deal is confidential, it
is understood to involve a $30million payment over time.

It is understood the $10million deal Mrs Holmes … Court
struck with Mr Darrel Jarvis to buy back the former
Heytesbury chief executive's 5 per cent shareholding in
1998 also involves staggered payments, which are still
being met. Mr Peter Holmes … Court said he had no idea of
Heytesbury's balance sheet because he had been on the
"absolute outside" for the last 12 months.

"However, I think it's very reasonable to expect they can
provide for that [arbitration] decision without further
dispositions. They were fortunate to find a full-price
buyer for Stoll Moss."

Last week, Mrs Holmes … Court's youngest son, Paul,
indicated that he was in no rush to negotiate his exit from
the family company. Continuing his late father's obsession
with horse breeding, Mr Paul Holmes … Court has been
running the Heytesbury Stud property south of Perth.

Mrs Holmes … Court has reduced her involvement in the day-
to-day management of Heytesbury since appointing a former
BankWest executive, Ms Elizabeth Gaines, as chief executive
officer in April. (Australian Financial Review  02-Nov-
2000)

LEND LEASE: May be forced to make further writedowns
----------------------------------------------------
Lend Lease signalled yesterday that it might be forced to
make a further $65 million provision, after-tax, for its
half-share of the beleaguered Fox Studio backlot.

The provision, its second in six months, triggered a sell-
off in its shares, which closed down 33 cents at $22.25.
Before the 11.30am announcement, Lend Lease shares were 20
cents higher at $22.80. At their lowest, they traded at
$22.05 on the news. Yesterday, stockbroking analysts
started taking the red pen to their forecasts for Lend
Lease's year to June, 2001, profit of about $400 million,
cutting their estimates by between 12 to 13 per cent.

One analyst, who declined to be named, said he expected the
shares to remain weak as investors realised just how much
money the ailing Fox backlot would continue to cost. Under
the plans outlined yesterday, the gates to the backlot will
be removed and a separate ticket office installed for the
attractions.

The high-ticket prices, ranging up to $107 for a family,
will be cut back, with adults paying $24.95 and children
$14.95 for the attractions. But Lend Lease warned that the
lower charges would end up being less profitable for the
group.

Although the Bent Street retail and theatre precinct and
the working studios have performed above expectations, the
backlot has continued to hemorrhage. The project cost Lend
Lease about $215 million to develop, but the company
has so far written down its investment by about $130
million before tax and yesterday flagged a further
provision of about $90 million, before tax, reducing its
share to an implied value of about $15 million after
operating profits and losses.

A spokeswoman for News Corp, the joint venture partner,
said the group would assess the effect of the changes
before making any assessments. Lend Lease chief executive
David Ross said the plans to integrate the backlot with the
rest of the Fox Studio complex would involve minimal cost
to Lend Lease.

"We have a 45-year lease and as long as we operate in
accordance with the lease, which we are doing, we will
continue to have the backlot," Mr Ross said. "We have not
lodged any other development applications but there is room
to build further office space near the working studios.
The changes announced by Fox Studios today ... should
increase visitors to the site. However this will be less
profitable."

It is therefore likely that Lend Lease will need to make a
provision in the order of $65 million after tax in the
December half results. (The Age 02-Nov-2000)

SUNDOWNER GROUP: Shareholders challenge restructure
---------------------------------------------------
Embattled listed motel chain the Sundowner Group is facing
a shareholder revolt organized by the Australian Investors'
Association.

The AIA's call for an extraordinary general meeting to
replace all of Sundowner's current directors and the
group's responsible entity comes as the tourism minnow
begins a major overhaul of its operations. The association
has described Sundowner Motels Trust - units in which
continue to languish at less than half their 1997 $1 issue
price - as "grossly underperforming" and questioned whether
any proposed restructuring of the vehicle should be
approved by the current board.

AIA national president Mr Ray Bricknell said the EGM was
being organized using the 100 shareholder rule. Proposed is
the replacement of Sundowner Management by Burke Bond
Securities Ltd and the appointment of Mr Bricknell
along with Mr John Fries and Mr Graham Currie as directors.
The chairman of the Sundowner Group, Mr Graham Kelly,
described the AIA's actions as extremely destabilising to
the group's business.

On Monday, the Sundowner Group announced it had
internalized the management of its regional motel chain and
acquired the logo and intellectual property used by the
group from Sundowner Corp. Previously Sundowner Corp
operated the properties under an indefinite time frame. The
termination of the agreement and purchase of the group's
business names cost $1.5 million and do not require
shareholder approval, Mr Graham Kelly, the chairman of the
Sundowner Group, said Wednesday.

Sundowner Corp's shareholders include two companies
associated with Sundowner's managing director, Mr Peter
Charody.  Mr Kelly said Mr Charody would resign as managing
director and from the Sundowner boards along with non-
executive director Mr Pat Elliott, effective from November
30, as part of the management internationalization.

"This agreement has an immediate favourable impact on the
distributions and is expected to improve the result for the
year to 30th June 2001 by 0.6› per stapled security and by
more than 0.8› in a full year," Mr Kelly said. "It is the
first step in the revitalisation of the group."

The responsible entity for the trust and stapled company is
Sundowner Management Ltd (a company owned by Sundowner
Corp) which has agreed to waive its fees for the first
quarter of this fiscal year, equating to $112,000.
Sundowner Management has also capped its annual fees to 0.7
per cent of the group's gross assets.

The Sundowner Group has consistently failed to reach its
prospectus forecasts. Its full-year payout for the year to
June 30 was 6.35›, compared to 8.07› a year earlier.
(Australian Financial Review  02-Nov-2000)


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

GUANGDONG ENTERPRISES: Debt rehab plan in final phase
-----------------------------------------------------
Insolvent Guangdong Enterprises (Holdings) (GDE)'s US$5.95
billion debt restructuring plan has entered the final phase
as the group launched an exchange offer for bond holders
and announced a rights issue plan for its food subsidiary.

Under the latest proposal, GDE bond holders will be given
the right to exchange their bonds for other assets under a
restructuring plan. GDE owes bond holders about US$1
billion. The bulk of its liabilities were made to other
financial creditors. Creditor banks, for instance, account
for a majority of the liabilities.

For every US$100, bond holders will be repaid about US$67 -
though about US$57 are counted at face value - and receive
assets, including a water project, and other securities.
Cash makes up the remainder.  In comparison, GDE's
financial creditors will only get 11 US cents on the dollar
in a liquidation.

Approval by 95 per cent of bond holders is needed for the
exchange offer to proceed. GDE's creditor banks will be
shown the restructuring plan next week. As part of the debt
restructuring proposal, Guangnan (Holdings) - the
supermarket and food business arm of GDE - would launch a
17-for-two rights issue at 10 HK cents each to raise about
HK$773 million from existing shareholders, Guangnan
chairman Kang Dian said.

Proceeds would be used to repay part of Guangnan's HK$3.17
billion debt to financial creditors, according to Mr Kang.
Shares in Guangnan were suspended from trading yesterday.
GDE, the flagship investment arm of the Guangdong
provincial government, had a mountain of debt after Beijing
shut down Guangdong International Trust and Investment Corp
- one of Guangdong's premier fund-raising arms.

The 1998 closure caused an uproar among international
banks, which in turn tightened their lending to Chinese
companies, including GDE.  Many see GDE's restructuring as
a showcase by Beijing to reform scores of troubled
investment companies and financial institutions.

After two years of negotiations, the end of this year is
widely touted as the target date for a conclusion.
Sources said the Guangdong provincial government - which
holds a 56.9 per cent stake in Guangnan through GDE - had
set aside HK$800 million to subscribe to its share of the
rights issue.

Guangnan shares were unchanged at 14 HK cents on Tuesday.
This means the theoretical value of Guangnan's shares would
only be 1.5 HK cents.  Mr Kang has resigned all his GDE
positions - including the chairmanship in Guangnan and
directorship in GDE. (South China Morning Post 02-Nov-2000)


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

PT ASTRA INT'L: In the red with 272.8B rupiah loss
--------------------------------------------------
Indonesian automotive giant PT Astra International posted a
January-September net loss of 272.76 billion rupiah (S$51.8
million), which it attributed mainly to foreign exchange
losses that analysts said were expected.

Total revenue rose 104 percent to 20.2 trillion rupiah from
9.92 trillion in the same period last year, powered by a
hike in the automotive division, with car sales picking up
as Indonesia's economy gradually recovered from the
economic crisis.

Astra said gross profit rose more than 60 percent to 3.65
trillion rupiah, up from 2.22 trillion last year, and its
operating profit jumped over 70 percent to 2.4 trillion
rupiah from 1.4 trillion.

Astra said earlier car sales during the first nine months
reached 141,556 units -- more than 200 per cent higher than
the same period last year. HSBC Securities analyst Johannes
Salim forecast Astra's full-year revenue would reach 27
trillion rupiah.
Overall, analysts said the main concern was how Astra was
going to reduce its US dollar debt, which made it sensitive
to the volatility of the rupiah. (Business Times  03-Nov-
2000)

PT BARITO PASIFIK: Debt rehab transerred to JITF
PT DAYA GUNA SAMUDRA: Debt rehab transerred to JITF
PT PINTUNI: Debt rehab transerred to JITF
---------------------------------------------------
Head of the Jakarta Initiative Task Force (JITF) Bacelius
Ruru said the debt restructuring of 14 business companies
by the Indonesian Bank Restructuring Agency (IBRA) is being
transferred to the JITF.

Some of the 14 companies operate in agribusiness and agro-
industry, he said, not giving further details on their
debts. The 14 companies include PT Barito Pasifik, PT
Pintuni and PT Daya Guna Samudra.

The process is currently under way and due diligence will
soon be conducted, he added. The companies are those whose
liabilities at IBRA did not reach 50 percent of each of
their total problem credits. With the transfer, it is
expected that JITF`s target of restructuring US$3 billion
to $5 billion in debts in 2000 could be reached.

PT BUNAS FINANCE INDO.: Court OKs 40-day debt moratorium
--------------------------------------------------------
The Jakarta commercial court has granted Ongko Group unit
PT Bunas Finance Indonesia a 40-day debt payment
suspension.
According to Judge Christi Purnamiwulan, Bunas Finance will
seek creditor approval to restructure its debt. Bunas'
outstanding debt comprises US$234.9 million, 8 million dm
and 156.8 billion rupiah.

Under the debt restructuring proposal, Bunas said it will
pay 33.63 percent of the debt in cash in two installments.
The first installment will be paid when the proposal is
approved while the second installment will depend on
creditor approval. For the remaining portions, 59.41
percent will be converted into mandatory convertible bonds,
0.96 percent into term loans and 6 percent will be swapped
with shares in 29 Ongko companies.

PT CHANDRA ASRI: IBRA seeking collateral for debt
-------------------------------------------------
The Indonesian Bank Restructuring Agency is seeking Prajogo
Pangestu's stake in PT Tri Polyta as collateral for the
restructuring of PT Chandra Asri's debt, Bisnis Indonesia
quoted IBRA financial advisor Amir Sambodo as saying.

Prajogo is the largest shareholder in PT Tri Polyta and PT
Chandra Asri, which have debts to IBRA of 350 mln usd, the
report said. Sambodo said IBRA may set up a new holding
company to manage Chandra Asri and Tri Polyta.

The integration of Tri Polyta into the holding company will
cover the shortfall in Chandra Asri's assets as collateral
for debt restructuring. In a memorandum of understanding on
the Chandra Asri debt restructuring deal signed in June,
IBRA and Marubeni Corp agreed to transfer all Chandra
Asri's debt to IBRA, and switch 100 mln usd in debt to
Japanese creditors into equity, with the remaining debt of
around 600 mln usd to be paid over 12 years.

The scheme will allow IBRA to control a stake of up to 80
pct in Chandra Asri, with Marubeni controlling a stake of
20 percent.  Sambodo said the restructuring scheme has not
yet been endorsed as IBRA and local Chandra Asri share-
holders have yet to reach an agreement. (AsiaGatway
02-Nov-2000)


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

AKAI ELECTRIC CO.: Files for court protection
---------------------------------------------
Akai Electric Co., a beleaguered maker of audio equipment
and videocassette recorders, confirmed has filed for court
protection from creditors with 47 billion yen in debts.

Founded in 1929, the company applied Thursday with the
Tokyo District Court for rehabilitation under a law aimed
at fast-track corporate revival. Suffering from declining
sales, Akai fell to a negative net worth of 42.61 billion
yen in fiscal 1999, which ended in March, posting an
unconsolidated operating loss of 3.03 billion yen, a pretax
loss of 2.34 billion yen and a net loss of 102.65 billion
yen.

On a consolidated basis, it posted a net loss of 100.55
billion yen, a pretax loss of 9.46 billion yen and an
operating loss of 6.78 billion yen in the fiscal year, on
sales of 34.97 billion yen, down sharply from 55.96 billion
yen the previous year. It will ask some 370 creditors,
including Hongkong & Shanghai Banking Corp. and the Bank of
Tokyo-Mitsubishi, for debt waivers as part of its
rehabilitation plan, company officials said.

Backed by Grande Holdings Ltd. of Hong Kong, the company
will seek reconstruction centering on a sales expansion of
its home theater system and DVD products, it said. It has
taken a particular beating from price falls in audiovisual
equipment, while sales of its mobile phones, personal
computers and other information technology-related products
are sound, it said.

After registering successive red ink in fiscal 1993 and
1994, Akai sought capital assistance in 1995 from Semi-Tech
(Global) Co. of Hong Kong, which took a 55% stake in it and
later changed its name to Akai Holdings Ltd. (AHL).
Facing financial difficulties, however, the parent AHL
itself collapsed and was ordered by a local court in August
to disband.

The Grande group, a major creditor to AHL, has given advice
to both AHL and Akai, the officials said. The Tokyo Stock
Exchange said the same day it will delist Akai Electric on
Feb. 3 next year, after placing the stock on its
liquidation post for three months to allow investors to
settle positions. The issue finished the day at 9 yen, down
1 yen.  (Kyodo News Agency  02-Nov-2000)


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

CHEJU BANK: To be placed under holding company
HANVIT:  To be placed under holding company
KWANGJU BANK: To be placed under holding company
PEACE BANK: To be placed under holding company
------------------------------------------------
The government is likely to place four troubled commercial
banks - Hanvit, Peace, Cheju and Kwangju - under an
envisioned financial holding company this month, officials
said yesterday.

"An evaluation committee is expected to turn down the four
banks' reform plans," an official of the Financial
Supervisory Service said yesterday. "The government may
then restructure the four banks and put them under a
financial holding company."

As part of the government's second-phase financial
overhaul, the committee has been reviewing the viability of
the four banks, Cho Hung Bank and Korea Exchange Bank. The
committee's review is at the final stage and its results
will be announced Friday. When the results come out, the
government will first clean the four banks up and may put
them under the financial holding company, he said.

However, the official said that Cho Hung may be allowed to
stand on its own as its BIS (Bank for International
Settlements) capital adequacy ratio exceeds the 8 percent
requirement. Even if Cho Hung is excluded from the list of
banks to be put under the financial holding company, it
should put forward a plan to recover from its loss from
exposure to Ssangyong Cement Co., he said.

Cho Hung is the main creditor bank of the troubled cement
maker. In addition, Korea Exchange Bank may also be allowed
to reform itself without being placed under the financial
holding company on condition that it raises its capital to
boost its capital adequacy ratio, the official said. The
government and Commertzbank of Germany have pledged to
increase KEB's capital by 600 billion won in order to
improve its financial health. (Korea Herald 2-Nov-2000)

DAEWOO MOTOR: Main creditor rejects rescue plan
-----------------------------------------------
The main creditor of South Korea's ailing Daewoo Motor has
rejected the car maker's rescue plan, which calls for 3,500
jobs to be cut, a senior official at Korea Development Bank
said yesterday.

But analysts said the creditor's objection appeared to be
aimed at squeezing concessions from the restive labour
union and that creditors would soon have to inject fresh
loans in order to sell the car maker to General Motors
(GM).

"The restructuring plan is meaningless unless it has union
agreement," said Mr Park Sang Bae, executive director of
the state-run bank.

He said Daewoo Motor needed to obtain consent from its
parts suppliers for a plan to cut costs through co-
operation with them.  Earlier this week, Daewoo Motor vowed
to cut 3,500 of its 19,000-strong workforce next year,
slash operating costs and close or sell unprofitable
overseas operations, but said it would need 830 billion won
(S$1.33 billion) in support loans through the first half of
next year.

"I think Daewoo Motor's plans look unrealistic and there is
no way the union will accept the plans either," said Mr Kim
Chul Jung, senior analyst at Jardine Fleming Securities.
"But creditors have no other choice but to keep the company
alive to avoid ruining negotiations to sell it to GM."
Leaders of the 13,000-member union rejected the company's
cost-saving measures because of the job cuts.  Daewoo
chairman Lee Jong Dae said on Tuesday that the company had
no choice and asked for co-operation from the union.
He added that all operations of Daewoo Motor depended on
the swift support of creditors.  (Reuters, Straits Times
03-Nov-2000)

HYUNDAI ENGIN.& CONSTR.: Bracing for court receivership
-------------------------------------------------------
Hyundai Engineering & Construction employees are bracing
for the worst, as rumors persist that the government and
local creditor banks are considering placing the nearly
bankrupt contractor under court receivership as early as
Friday.

Daishin Securities said in a report that the chances that
Hyundai Engineering could turn itself around through self-
rescue steps are very low. Debt-for-equity swaps would
likely clash with the Chung family's bid to defend its
management controls for Hyundai Engineering.

The company faces huge maturing debts totaling about 1.1
trillion won at the end of this month. In addition, about
400 billion won worth of commercial paper will come due by
the end of the year. Hyundai Engineering's credit rating
has already fallen to the junk bond level, further
hampering the firm's effort to raise new funds. The
company's plan to attract about $350 million in investments
from abroad by the year's end may also backfire amid
eroding market confidence.

"Creditors and investors are losing patience, as reform
efforts are falling behind schedule," said an analyst. "The
parent group's heavy losses in its North Korean projects,
worth trillions of won, and the Chung family's internal
dispute further disappointed the market."

Industry observers say that tomorrow will be the most
critical day for Hyundai, as the maturing of bonds with
warrant (BWs) worth $80 million will coincide with the
government's announcement of a black list of ailing firms
to face exits. But Hyundai Engineering officials said they
are confident the BWs will be successfully settled. (Korea
Herald  2-Nov-2000)

JINDO: Creditors to put up for sale
-----------------------------------
Creditors have decided to put Jindo, manufacturer and
exporter of garments and containers, up for sale through
corporate restructuring vehicles (CRV) after suspending its
work-out.

Sources said creditors had drawn up a plan to put the firm
up for sale by putting it in the category of companies to
be sold through CRV without bothering to go by restructur-
ing guidelines. Under the guidelines, creditors have to
classify insolvent firms according to a number categories,
such as those that can operate normally, those that have
temporary liquidity problems, and those that have
structural liquidity problems. The sources said Jindo would
be sold and that steps already were being taken towards
that end.


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

DBP DAIWA SECURITIES: Linked to Reynolds stock scam
FIRST ORIENT SECURITIES: Linked to Reynolds stock scam
GUILD SECURITIES INC.: Linked to Reynolds stock scam
INTRA-INVEST SECURITIES: Linked to Reynolds stock scam
JAKA SECURITIES CORP.: Linked to Reynolds stock scam
MAGNUM INT'L SECURITIES: Linked to Reynolds stock scam
MARK SECURITIES CORP.: Linked to Reynolds stock scam
UPCC SECURITIES CORP.: Linked to Reynolds stock scam
------------------------------------------------------
Philippine Stock Exchange president Ramon Garcia said the
PSE's listing committee, for its part, is now studying the
possible delisting of Reynolds from the exchange as the
BCEC had confirmed suspicions that the company was
influencing the trading of its own shares.

However, he said, delisting would be enforced only as a
last resort because this option would put other Reynolds
shareholders at a disadvantage. "Delisting will remove the
opportunity for other stockholders to unload their Reynolds
shares," Garcia stressed.

In a memorandum to the PSE's board of governors dated Oct.
25, the BCEC said the bourse should penalize the brokers
found to be in complicity with Reynolds in violation of
Section 24-1 of the Securities Regulation Code, which
prohibits transactions that involve no change in the
beneficial ownership of such security.

The eight brokerage houses pinned down by the BCEC report
were DBP Daiwa Securities SB Capital Markets Philippines,
First Orient Securities Inc., Guild Securities Inc., Intra-
Invest Securities Inc., Jaka Securities Corp., Magnum
International Securities Inc., Mark Securities Corp. and
UPCC Securities Corp.

An earlier report by the PSE's compliance and surveillance
group (CSG) indicated only six brokerage houses involved in
the Reynolds scam. But Garcia said the brokerage houses
would be slapped only with monetary fines.

"The findings of the BCEC showed that their offenses were
not grave enough to merit suspension or expulsion from the
bourse," he said.

Aside from wash sales or trading with no change in
beneficial ownership, the brokerage houses were also found
as accessories in facilitating EQTrade, where shares are
being farmed out by a single investor to different names
and funneled through a broker to give an aura of active
trading of a particular issue.

"It was the consensus among the members of the committee
that brokers who executed a number of EQTrade transactions
as well as back-to-back transactions could not have
possibly been unaware of the scheme of the (Reynolds) group
and its officers, hence could also be cited for their
complicity with said scheme," the BCEC memorandum said.

The BCEC agreed on penalizing the brokers with a basic fine
of P20,000 and impose additional penalties ranging from
P2,000 to P5,000 depending on the value of EQTrade
transactions, record of a similar offense in the past and
for having continued trading despite the CSG's word of
caution.

"It was also decided that brokers who merely had both
buying and selling transactions and having made advance
payments to their clients, are not indicative of
complicity. Similarly, it was also decided that brokers who
were found to have executed both buying and selling
transactions are not necessarily in complicity in
(Reynold's) scheme," the BCEC said.

Aside from the brokers named by BCEC, other brokers who
heavily traded Reynolds shares during the last 12 months
prior to the CSG's expose were HDI Securities Inc., GK Goh
Securities & Stocks Inc., and All Asiasecurities
Management Corp.

GK Goh was earlier included in the CSG's report of possible
accomplices but was stricken off the list by the BCEC's
findings. Garcia said the PSE board would hear the brokers'
request for reconsideration. Although the scale of the
alleged price manipulation attempts behind Reynolds was not
as alarming as the controversial BW Resources Corp. case,
market players said the apparent attempt to support
Reynolds shares have been going on even before the BW
scandal erupted.

Some brokers were wondering about motive behind Reynold's
crusade to support its own share prices, but market sources
said the company, which was currently undergoing a
restructuring program with creditor-banks, had some
share prices pledged as collateral to these banks. To
maintain the value of these collateral, they said Reynolds
shares would have to be maintained at a certain level to be
acceptable to the banks, which were now required by the
Bangko Sentral to implement the marking-to-market of their
securities holdings and other assets.

Other sources said most of the Reynolds shares at float
were held by its retirement fund and holding company, which
meant the culprit behind the price manipulation attempts
was the company itself and not just any big investor which
had picked on Reynolds for speculative play. Reynolds was
established in 1954 by Reynolds International Inc. of the
United States.

It manufactures and distributes aluminum sheets, foil and
extruded sections used in the packaging, container,
construction, appliance manufacturing and vehicle
manufacturing industries. (Philippine Daily Inquirer
03-Nov-2000)

VICTORIAS MILLING CORP.: SEC seen as giving nod to rehab
--------------------------------------------------------
The Securities and Exchange Commission is preparing an
order to approve the proposed alternative rehabilitation
plan filed by Victorias Milling Co.'s management committee
to revive the publicly listed sugar producer.

SEC officials said that most creditors of VMC have approved
the rehab plan except for Bank of the Philippine Islands.
The VMC mancom is composed largely of the clean creditors
of VMC, which owes about P5.3 billion.

SEC officials also explained that the alternative rehab
plan submitted by VMC itself would simply be treated as a
"comment" to the alternative plan presented by the VMC
mancom.  The VMC mancom submitted an alternative rehab plan
to the SEC last May following the failure of the bidding
for 53 percent of VMC as called for in an earlier rehab
plan of the mancom that was approved by the Commission.

The mancom's alternative rehab plan proposed the entry of
an acceptable joint venture partner that will manage VMC
and provide additional cash of least P300 million and the
reduction of the sugar producer's P5.3 billion in
debt through conversion into equity and convertible notes.

However, the VMC management opposed the mancom's
alternative rehab plan and itself proposed its own plan to
the Commission. VMC president Manuel Ma€alac 's plan put a
heavy share of the company's financial burden on both the
sugar producer's shareholders and creditors. It provided
for the reduction of the sugar mill's P5.3 billion in debt
also through conversion of debt into equity and into
convertible notes, but required cash infusion of P400
million through a new loan.

SEC officials said that they would approve the entry of a
strategic investor who would put in P400 million into VMC
and the conversion of debt to equity to allow creditor
banks to take 70 percent of the company. Under the plan, if
within 120 days of the debt conversion and appointment of
a new board of directors to the VMC, no white knight came
in to rescue the sugar producer, then the clean creditors
themselves would put in the need capital infusion.
(Philippine Daily Inquirer  03-Nov- 2000)

WESTMONT INVEST.CORP.: SEC pushes legal action vs. execs
--------------------------------------------------------
The Securities and Exchange Commission has recommended to
the Department of Justice the filing of criminal cases
against 30 directors and officers of Westmont Investment
Corp. (as of 1999) for violation of the anti-fraud
provisions of the Securities Regulation Code and for the
non-registration of securities.

The recommendation was contained in a report submitted to
the DOJ last Monday. SEC Chair Lilia Bautista said the
report was submitted to Justice Secretary Artemio Tuquero
"for evaluation" and that it would be up to the justice
department to decide whether to pursue the case.

Among the Wincorp directors cited in the report for
possible prosecution were former Wincorp chair John
Espiritu, Alfonso Reyno III, Vicente Cualoping, Wincorp
treasurer Henry Cualoping, Simeon Cua, fertilizer king
and Wincorp vice chair Manuel Tan Kian See, Wincorp
president Antonio Ong, Mariza Santos-Tan, former Philippine
National Oil Corp. head Manuel Estrella, Wincorp corporate
secretary Nemesio Briones and Wincorp assistant corporate
secretary Francis Orena.

The SEC prosecution and enforcement department, which
prepared the investigative report, had also asked the SEC's
money market operations department to look into the
possibility of imposing administrative fines on Wincorp
officials for the non-registration of securities. Wincorp
reportedly brokered, using Westmont Bank branches and
personnel, the lending of about P7 billion in funds from
over 1,000 individuals to 20 companies mostly owned by
Exequiel Robles of Sta.
Lucia Realty, the Cua family of ACL Development Corp., John
Espiritu of Ebecom Inc. and Manuel Tan of Pearlbank
Securities Inc.  Tan, however, denied that Pearlbank has
outstanding loans from Wincorp or any individual creditors.

Wincorp is a wholly owned unit of Unioil Resources and
Holdings Corp., which is owned by ACL Development, Sta.
Lucia Realty, Pearlbank Securities, Ebecom Inc. and Alfonso
Reyno Jr.  The companies that owned Unioil also had
substantial stakes in Westmont Bank, before it was acquired
by United Overseas Bank of Singapore.

In the report to the DOJ, the SEC cited the complaint
against Wincorp and Westmont Bank filed by 333 individual
Wincorp creditors/funders who invested over P400 million
in securities that were offered by the investment house.
It was reported early last month that the SEC had found
enough evidence to file with the Department of Justice a
criminal complaint against the responsible directors and
officers of Wincorp for violations of the country'
s Revised Securities Act.

Documents showed that the SEC's prosecution and enforcement
department found evidence indicating that Wincorp officials
violated Section 4(a) of the RSA that requires registration
of securities unless otherwise exempt.  Wincorp officials
also allegedly broke the rules provided in Section 29(a) 1
and 2 of RSA that expressly prohibit any person, in
connection with the purchase and sale of any securities, to
employ any scheme to defraud and to obtain money or
property by means of any false statement.

In a meeting with the Commission en banc in October, the
PED said that the issuance of confirmation advice by
Wincorp in exchange for the funds of investors to be lent
to borrowers constituted a scheme, came in the form of
an investment contract.  Therefore, the department said,
the non-registration of these investment contracts or
confirmation advice documents held the company officials
liable to a fine of P5,000 to P500,000 and/or imprisonment
of seven to 21 years.

Last May, the SEC ordered Wincorp to stop operations after
the commission found that the company violated the
country's rules on commercial papers when it renegotiated
the instruments it sold to investors. (Philippine Daily
Inquirer  03-Nov-2000)


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

CENTRAL PROVIDENT FUND TRUSTS: 80% have negative returns
--------------------------------------------------------
For the second quarter in a row, 80 per cent of Central
Provident Fund-approved (CPF-approved) unit trusts have
shown a negative return.

These findings were from an analysis done by William
Mercer, the consultant firm appointed by the CPF Board to
track the performances of CPF-approved investment
instruments, which include unit trusts and investment-
linked insurance products (ILPs).

"With fears of a slowdown in the US economy and high oil
prices, the September quarter was a difficult one for stock
markets globally, said Mercer investment consulting
practice leader (Singapore) Garry Hawker. "The Singapore
stock market as well as other Asian markets suffered as
investors lost confidence."

Out of the 95 unit trusts approved by the CPF, only 16 had
positive returns as at the end of September.  Funds posting
positive returns were those investing mainly in short-term
deposits or the technology, health-care and life sciences
sectors. About 46 per cent of unit trusts and 58 per cent
of ILPs underperformed their benchmarks during the
September quarter.

However, Mr Hawker pointed out that "over longer time
periods, most CPF-approved products continue to deliver
positive returns, in excess of benchmarks. Leaving CPF
money in the ordinary or special accounts is not
necessarily the best long-term strategy."

For the whole of last year, about 62 per cent of CPF-
approved investment instruments exceeded their respective
benchmarks.  Measured over a three-year period, about 65
per cent outperformed their benchmarks.  In general, the
only products that have not achieved positive returns over
the past three years have been those with significant
exposure to the smaller Asian stock markets.  These
markets, which were hit badly by the Asian financial
crisis, have in many cases yet to recover fully. (Straits
Times  03-Nov-2000)


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

BANGKOK STEEL INDUSTRY: Merger planned to cut money loss
--------------------------------------------------------
Bangkok Steel Industry, which had planned to merge with a
pair of other troubled Thai steel companies but which plan
was delayed when its creditors filed a petition for
rehabilitation for it with the bankruptcy court, owes about
four billion baht to Bangkok Bank and about one billion
baht to Siam Commercial Bank.

BSI had been in talks to merge with Cementhai Steel, a
subsidiary of the Siam Cement Group, and the NTS Steel
Group owned by tycoon Sawasdi Horrungruang. The company now
plans to contest the petition, proposing itself as planner
instead of BKK Planner, so the proposed merger can proceed.
BSI has until Nov 13 to file a formal protest with the
court.

Job losses would occur among the 4,000 employees of the
three companies, most likely in overlapping areas such as
warehouses, parts and administration.

Currently, the combined annual capacity of the three
companies is eight million tons, while demand for their
output has plummeted to only 1.5 million tons. Of its total
capacity of 1.2 million tons, BSI is now producing only
300,000 tons annually.

Prasert Tangtrongsakdi, chairman of BSI and its executive
board, said the steel industry, both locally and overseas,
has been faced with a rapidly contracting market because of
the recession. As a result, he added, BSI was losing 1,500
to 2,000 baht for every ton of steel it sold. It has
managed to survive so far, mainly because of  compensating
revenues from its zinc business. (Bangkok Post 2-Nov-2000)

MEDIA OF MEDIAS: Files rehabilitation plan
------------------------------------------
Media of Medias has filed a petition for business
rehabilitation in the Central Bankruptcy Court. An initial
hearing is scheduled for November 27.

NAKORNTHAI STRIP MILL: Gets 30 more days for rehab plan
-------------------------------------------------------
Nakornthai Strip Mill has been given one more month to
complete and submit its business rehabilitation plan to the
Central Bankruptcy Court, the new deadline being December
6. Company planner Ramkamhaeng Planner Ltd sought the
extension of time.


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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