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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

           Tuesday, December 5, 2000, Vol. 3, No. 236

                                    Headlines


* A U S T R A L I A *

DSTORE: Scarfe to make cutbacks after takeover
HUTCHISON TELECOMMUNICATIONS: Shares continue to dive
MITSUBISHI AUSTRALIA: Expects $150M loss


* C H I N A  &  H O N G  K O N G *

CHINA MOTION TELECOM: Posts HK$237M 1H loss
GENLUXE TRADING LTD: Facing winding up petition
HOWIN MINERAL CRYSTAL LTD: Facing winding up petition
JING YING SHE LTD: Facing winding up petition
JR DEVELOPMENT (HK) LTD: Facing winding up petition
MILLION FAIR LTD: Facing winding up petition
SEALAND WATERPROOFING ENGRS.CO.: Facing winding up petition
U-LI HONG LTD: Facing winding up petition
WAH LUNG TRADING (HK) LTD: Facing winding up petition
YICHARM PUBLICATIONS CO.LTD: Facing winding up petition


* I N D O N E S I A *

BANK DAGANG NASIONAL: Tycoon pledges more assets vs. debt
PT BAKRIE BROTHERS: 91% of creditors approve rehab plan
PT CHANDRA ASRI: Gov't approves debt restructuring
PT GARUDA INDONESIA: Bank Mandiri joins creditor syndicate
PT POLYFIN CANGGIH: Debt deal with IBRA approved by KKSK


* J A P A N *

DOO SHINYO KUMIAI: Goes bankrupt
KENWOOD CORP.: Forecasts net loss for the year
MATSUSHITA ELECTRIC: To restructure


* K O R E A *

HANIL SYNTHETIC FIBER: 3 creditors swap debt for equity
KOREA GENERAL CHEMICAL: Sale likely to be done this month
SSANGYONG CEMENT: Creditor says debt-for-equity swap option


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

ANGPING AND ASSOC.SECURS.: BIR to pursue tax case against
ARMSTRONG HOLDINGS INC.: BIR to pursue tax case against
ASIA SECURITIES INC.: BIR to pursue tax case against
AT DE CASTRO SECURITIES: BIR to pursue tax case against
DANTE TAN: BIR to pursue tax case against
GUILD SECURITIES: BIR to pursue tax case against
NATIONAL STEEL CORP.:Creditors oppose liquidator lease plan
PCCI SECURITIES: BIR to pursue tax case against
PHILIPPINE TELE.& TELE.CORP.: Mounting debts, annual loss
QUALITY INVESTMENTS CORP.: BIR to pursue tax case against
SECURITIES 2000 INC.: BIR to pursue tax case against


* T H A I L A N D *

KUANG HOLDING CO.LTD.: Restructures debt
KUANG PEI SAN FOOD PRODUCTS PLC: Restructures debt
THAI ELECTRONIC INDUSTRY: Submits rehabilitation plan
THAI PETROCHEM.INDUS.: Faces condensate splitters closure


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

DSTORE: Scarfe to make cutbacks after takeover
----------------------------------------------
Harris Scarfe is expected to retrench a large proportion of
Dstore's 40 employees this week after taking over the cash-
strapped e-tailer last Friday. The Adelaide retailer will
attempt to improve gross margins at Dstore by using its own
administrative, finance and distribution team.

"Initially, we will support the team in the trade up to
Christmas," said David Brooks, chief operating officer of
Harris Scarfe's e-commerce arm, Camworks. "But we expect to
bring a better gross margin to this business immediately."

Mr Brooks said the Dstore brand would be retained because
of its strong presence in the NSW and Victorian markets,
complementing that of Harris Scarfe, which is more well
known in South Australia, Tasmania and Victoria.  Harris
Scarfe's relationship with more than 3,000 suppliers will
give Dstore stronger buying power and will establish
greater economies of scale between the two operations.

Dstore is making sales of about $400,000 per week or about
$12 million on annualised basis.  Harris Scarfe set up
Camworks in August this year as a way of selling from its
catalogues. The company has a total product line of 200,000
items.

Dstore agreed to the takeover after failing to secure up to
$6 million in fresh funds to keep it afloat. The fall of
Dstore, which was chaired by former NSW premier Nick
Greiner, has put a question mark over the viability of
stand-alone etailing in a market as small as Australia.

After just one year in business, Dstore had burnt more than
$23 million raised through private investors in January
after having difficulties attracting online shoppers.
Dstore owner and former chief executive David Gold lashed
out at its initial investors - including Kerry Packer and
Rodney Adler - for deserting their investment in the
company.

Directors stood down on Friday after agreeing on a final
deal with Harris Scarfe.  Mr Gold, who held a 16 percent
stake in the etailer, said he would leave the company and
take a few months off before deciding his next career move.
Under the deal, Harris Scarfe will take control of Dstore's
20 percent stake in online gift retailer wishlist. com.au
and its 50 percent holding in delivery company EFill.

Mr Brooks said the relationship with EFill would be
investigated, with the possibility of it being used for
fulfilment of Harris Scarfe's online businesses.
The takeover would expand Harris Scarfe's reach into
metropolitan Melbourne and Sydney, where Dstore has a
strong following. (The Australian  04-Dec-2000)

HUTCHISON TELECOMMUNICATIONS: Shares continue to dive
-----------------------------------------------------
Hutchison Telecommunications' attempts to quell fears about
a wholesale sell down by major shareholders failed to halt
the company's diving share price. Hutchison shares
continued downward and now have fallen more than 30 percent
in the last two weeks.

MITSUBISHI AUSTRALIA: Expects $150M loss
----------------------------------------
Mitsubishi Australia is expected to lose more than $150
million this year before moving to a break-even position in
2001, after receiving a much-needed cash injection last
week.

Mitsubishi Australia chief executive officer Mr Tom
Phillips yesterday said more funds would be needed in
addition to the $172 million lifeline extended by the car
maker's parent group in Japan last Tuesday.

"Certainly for development for a brand new model for the
future, we will need more investment, yes, there's no doubt
about that and that's clearly understood," Mr Phillips
said.

Mr Phillips said Mitsubishi Australia, which posted a
record net loss of $130 million last year, would lose more
than $150 million this year.  "We're forecasting next year
to reach break-even, and I think that's really the key year
for us," he said.

Mitsubishi Australia planned to generate extra export
volumes, reduce its component costs and improve
productivity in its Adelaide vehicle assembly plant and
engine production facility.  Mr Phillips said the company
would also next year derive the full benefit of its
restructuring program and would have better management of
the currency impact, following a fall in the value of the
Australian dollar against the Japanese yen.

"Once some of the things that we are planning to do, like
increase the exports, reducing our component costs and so
on, kick in, then in 2002 and 2003 we'll be very
profitable."

Mitsubishi's decision to channel funds into the Australian
operation followed recent speculation that the car maker's
two Adelaide factories were under growing threat of
closure.

"I think we've still got a long way to go but I think this
has been a great sign from our shareholders that they do
have faith in us and they do consider us part of their
future plans," Mr Phillips said.

However, he said there were no guarantees from the head
company over the future of the Australian operation, which
employs 3200 people.

"They made it very clear that Mitsubishi Motors Australia
is going to be part of their global business strategy," he
said.  "Quite frankly, I don't know what that means at this
stage."

Mr Phillips said the parent company's new board, comprising
representatives of Mitsubishi and 34 per cent shareholder
DaimlerChrysler, was evaluating the companies' operations
around the world.

"I think we will play a part in that," he said.
Mr Phillips said Mitsubishi Australia planned to increase
its exports to 20,000 vehicles next year, from 11,000 this
year. My goal over the next two years is to actually
achieve at least 30,000 exports, so we'll build 30,000 for
domestic use and 30,000 for exports. That's the plan and
we'll achieve that through 2002."

Mr Phillips said Mitsubishi Australia could survive for the
next two or three years without receiving further money
from the Government. (Border Mail Online  04-Dec-2000)


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

CHINA MOTION TELECOM: Posts HK$237M 1H loss
-------------------------------------------
China Motion Telecom fell into the red for the six months
ended Sept. 30, posting a HK$237M loss. CM Telecom's
turnover fell 26 percent from the same perid the previous
year to HK$365M.  During the first six months of this year,
only its telecommunications network business recorded an
increase in revenue and was profitable. Turnover for it
rose 7 percent to HK$93M.

A one-time HK$236M provision dragged the company into its
first loss since the company's incorporation in 1990. The
company had made a HK$195M provision for obsolete telecom-
munications equipment, a write-off of HK$41M goodwill
arising from the acquisitions of paging operations and
HK$44M for inventories and doubtful debts.  The board of
the company did not recommend an interim dividend.

GENLUXE TRADING LTD: Facing winding up petition
-----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 27 on the petition of
Kincheng Banking Corporation for the winding up of Genluxe
Trading Limited. A notice of legal appearance must be filed
on or before December 26.

HOWIN MINERAL CRYSTAL LTD: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 27 on the petition of
Kincheng Banking Corporation for the winding up of Howin
Mineral Crystal Limited. A notice of legal appearance must
be filed on or before December 26.

JING YING SHE LTD: Facing winding up petition
---------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 12 on the petition of
Lau Ah Sum for the winding up of Jing Ying She Limited. A
notice of legal appearance must be filed on or before
December 11.

JR DEVELOPMENT (HK) LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 9, 2001, on the petition
of All Ports Holdings Limited for the winding up of JR
Development (Hong Kong) Limited. A notice of legal
appearance must be filed on or before January 8.

MILLION FAIR LTD: Facing winding up petition
--------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on February 7, 2001, on the
petition of Wong Kam Chung for the winding up of Million
Fair Limited. A notice of legal appearance must be filed on
or before February 6.

SEALAND WATERPROOFING ENGRS.CO.: Facing winding up petition
-----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on February 7, 2001, on the
petition of Wan Chi Ching for the winding up of Sealand
Waterproofing Engineers Company Limited. A notice of legal
appearance must be filed on or before February 6.

U-LI HONG LTD: Facing winding up petition
-----------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 16, 2001, on the
petition of Lau, Wong & Chan, on behalf of petitioner
Family International (Asia) Limited for the winding up of
U-Li Hong Limited. A notice of legal appearance must be
filed on or before January 15.

WAH LUNG TRADING (HK) LTD: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 10, 2001, on the
petition of Caltex Oil Hong Kong Limited for the winding up
of Wah Lung Trading (Hong Kong) Limited. A notice of legal
appearance must be filed on or before January 9.

YICHARM PUBLICATIONS CO.LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on February 7, 2001, on the
petition of Kwan Chun Fai for the winding up of Yicharm
Publications Company Limited. A notice of legal appearance
must be filed on or before February 6.


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

BANK DAGANG NASIONAL: Tycoon pledges more assets vs. debt
---------------------------------------------------------
Tycoon Sjamsul Nursalim has pledged three companies to
cover the debt of his bank to the government. Owner of Bank
Dagang Nasional Indonesia (BDNI), one of the banks
liquidated by the government, Nursalim agreed to provide
more assets to cover the bank's debt of Rp28.4 trillion
(US$3 billion) to the government.

PT BAKRIE BROTHERS: 91% of creditors approve rehab plan
-------------------------------------------------------
PT Bakrie Brothers has confirmed that 91.4 percent of its
creditors have approved its debt restructuring proposal and
2.15 percent rejected it, while 6.45 percent abstained.

Creditors' approval of PT Bakrie Brothers' US$1.086 billion
debt-restructuring proposal is seen as a "positive step
forward" for the company, but it will take longer for it to
recover from its debt trap, analysts said.  An analyst with
a regional brokerage said the market has been ignoring
Bakrie Brothers shares for sometime amid the lengthy
process of its debt restructuring.

"This is because the company is one of the most indebted"
companies in Indonesia, as it expanded its business
aggressively before the crisis," he said. "The
restructuring approval means that it survived from
bankruptcy. It can now concentrate on its day-to-day
operations."

Under the debt restructuring, the group will convert its
debts into 95 percent equity in five Bakrie subsidiaries -
Bakrie & Brothers Tbk, Bakrie Sumatera Plantations Tbk,
Arutimin Indonesia and Bakrie Electronics Co - through a
special-purpose vehicle (SPV).

However, an analyst at Harita Kencana Securities said: "I'm
a bit pessimistic (over whether) the company will recover
in the short- to medium-term, considering its debts, as
well as the type of industries it is involved in."

One of the direct positive impacts of the debt restruc-
turing approval is that it will not be pressured to repay
interest on its debts, as the debts have been converted
into equity, he said. However, shareholders will be
disadvantaged under the debt-to-equity swap as the
converted equity may have been valued lower than the
expected levels.

Bakrie corporate communications manager Lalu Mara Satria
Wangsa said the debt-to-equity swap was the only means
possible for shareholders and management to help the
company continue its operations. "The founding shareholders
have taken the risk of diluting their shares in the company
in order to help Bakrie Brothers continue to operate," he
said.

The Harita Kencana analyst said the easing financial burden
in the short-term would be reflected in Bakrie Brothers'
profit-and-loss statement, adding the impact will be seen
after three to six months. He said market players appear to
be "less enthusiastic" with Bakrie's debt restructuring,
compared to that of Astra International's.

Astra managed to maintain its cash-flow as seen in the
recovery of its car sales after sharp falls in 1998 and
1999. Bakrie's business, on the other hand, is centred
mostly in the industrial sector or in long-term
investments, for instance pipes and telecommunications, he
said, adding that these industries rely on the recovery of
the industrial sector in general which takes longer to
recover.

"You also need to have confidence in the investment climate
before you start building a manufacturing (plant)," he
said.

Bakrie's shares remain suspended following the company's
move earlier for temporary suspension on its debt payment.
Mara said the company hopes that the approval of the
restructuring will allow Bakrie shares to commence trading
again, "but it depends on the capital markets authority."
(AFX (AP) 29-Nov-2000)

PT CHANDRA ASRI: Gov't approves debt restructuring
--------------------------------------------------
The government has approved a debt-restructuring deal
for petrochemical giant PT Chandra Asri, under which
businessman Prajogo Pangestu would get a 49 percent stake,
the government 31 percent and Japan's Marubeni Corp., 20
percent in the company.

A meeting of the Financial Sector Policy Committee (FSPC)
decided on Wednesday that Prajogo through his company PT
Inter Petrindo Inti Citra (IPIC) would take over $638.6
million of Chandra Asri's foreign debts and Rp 120 billion
of its local debts. The government would hold its 31
percent stake through the Indonesian Bank Restructuring
Agency (IBRA), FSPC said in a press release.

The FSPC, comprising senior economic ministers, is in
charge of approving IBRA's major corporate and bank
restructuring deals. Chandra Asri owes $700 million to
Japanese creditors and some Rp3 trillion to domestic banks
that are under IBRA's supervision. Under pressure from the
Japanese creditors, the government initially agreed
to take an 80 percent stake in the company with Marubeni,
as the leader of the Japanese creditor consortium, holding
the remaining 20 percent.

However, when the public decried the agreement as a bailout
scheme for the conglomerate, the government changed its
mind. Analysts have said that by taking 80 percent of
Chandra Asri, the government could leave itself liable for
any future debts of the company.

"All $800 million worth of shares of PT Chandra Asri owned
by the Indonesian founding shareholders will be transferred
to IPIC under Prajogo's ownership," FSPC added.

According to FSPC, Prajogo's 49 percent stake in Chandra
Asri is worth $800 million, for which he will issue
convertible bonds in the same amount to IBRA. The bonds are
convertible to IPIC shares and carry an annual interest
rate of six percent for a period of 12 years.

IPIC will guarantee the bonds with its shares in Chandra
Asri as well as PT Tripolyta, and its assets in the form of
shares and lands of Panca Puri. Prajogo must also submit
additional assets as collateral, including his shares in PT
Tanjung Enim Lestari, PT Barito Pacific Timber and in other
companies.

FSPC has required Prajogo to submit the assets and shares
within one week after the debt restructuring agreement is
made. The committee has also required Prajogo to surrender
personal property as additional collateral.

"If according to an evaluation by an independent appraiser,
Prajogo's guarantee for the bonds other than IPIC's stake
in Chandra Asri, does not cover the nominal value of the
bonds, Prajogo will be obliged to cover the shortfall,"
FSPC said.

Under the deal, the government and Prajogo will ask
Marubeni to lower itsdebt rates from the current rate of
2.5 percentage points above the London Interbank Offer Rate
(Libor) to a level similar to the Libor rate, while
extending the repayment period from the present 12 years to
15 years. The government will also ask Marubeni to raise
its ownership in Chandra Asri from its current debt-to-
equity deal worth $100 million.

"The shareholders of Chandra Asri (IBRA, Prajogo, and
Marubeni) are given a maximum of three months to finalize
the negotiation process, which IBRA will then report to the
FSPC," the committee said.

The government also asked Marubeni to help Chandra Asri
find working capital, extend its production capacity and
allow Chandra Asri to find buyers and suppliers other than
Marubeni to reduce its dependence on the Japanese company.
Because of the sensitive issue of the exact ownership of
Chandra Asri, the government has delayed the debt
restructuring deal several times.

The country hopes that a restructuring of its corporate
sector will create enough investor confidence to enable
domestic banks to resume lending to the real sector.
(Jakarta Post 02-Dec-2000)

PT GARUDA INDONESIA: Bank Mandiri joins creditor syndicate
----------------------------------------------------------
State-owned Bank Mandiri has agreed to join a syndication
of Garuda Indonesia's creditors to restructure the national
flag carrier's debts for three years instead of 10 years as
proposed by the European Credit Agency (ECA). Bank Mandiri
president ECW Neloe said that his bank has only agreed to a
three-year period, during which Garuda could repay the
debts by instalments.


PT POLYFIN CANGGIH: Debt deal with IBRA approved by KKSK
--------------------------------------------------------
The Financial Sector Policy Committee (KKSK) has approved a
US$134.31 million debt-restructuring deal between the
Indonesian Bank Restructuring Agency (IBRA) and PT Polyfin
Canggih.

Under the debt-restructuring plan, Polyfin initially will
pay US$6.1 million in cash, according to a Bisnis Indonesia
report quoting KKSK. Polyfin also must repay US$89 million
of the outstanding debt in scheduled installments over 10
years, with a one-year grace period, at an interest rate of
3.5 pct above SIBOR.

The remaining portion of the outstanding debt will be in
the form of two series of 8 percent convertible bonds worth
a total of US$39.21 million with a 10-year term.


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

DOO SHINYO KUMIAI: Goes bankrupt
--------------------------------
Japan's Financial Reconstruction Commission has announced
that an ailing Hokkaido credit cooperative, Doo Shinyo
Kumiai, has gone bankrupt.

Doo has told Japanese financial industry regulator that it
may suspend withdrawals of deposits. Based on financial
reconstruction law, the FRC now will send financial
administrators to the credit cooperative and look for a
financial institution to take over Doo's operations.
Deposits at Doo will be protected in full, the FRC said.

Doo Shinyo Kumiai had a negative net worth of 2.8 billion
yen as of March 31, attributed to paper losses on its
securities portfolio. Founded in 1951, Takikawa-based Doo
has 10 branches. As of the end of March, deposits totaled
45.8 billion yen while outstanding loans totaled 34.8
billion yen.

KENWOOD CORP.: Forecasts net loss for the year
----------------------------------------------
Japan's Kenwood Corp is predicting a consolidated
group net loss of 8 billion yen (US$ 73.5 million) this
fiscal year 2000, up from a 1 billion yen loss the previous
year. The company said the net loss was primarily due to
losses from liquidating unprofitable businesses. Kenwood
will post an extraordinary loss of about 5 billion yen in
the second half to cover the withdrawal from two businesses
and the liquidation of subsidiaries.

MATSUSHITA ELECTRIC: To restructure
-----------------------------------
Matsushita Electric has announced a three-year
restructuring plan that calls for closure of 30 of its 133
factories in Japan and a gradual transference of that
capacity to overseas operations in China and Southeast
Asia.

Matsushita is one of the largest manufacturers of consumer
electronics in the world ($66 billion in revenue last
year), but it had a paltry net profit of only $897 million.
The Osaka-based company manufactures a wide--if not
unwieldy and overlapping--spectrum of products, ranging
from vacuum cleaners and refrigerators to DVDs and mobile
phones under the National, Panasonic, Technics, Victor,
Quasar and JVC brand names.

Kunio Nakamura, who was named president of the company last
June, unveiled "Value Creation 21" yesterday. He said the
goal is to carry Matsushita into the 21st century,
transforming it into a "supermanufacturer" by the end of
fiscal 2004, which ends March 31, 2004.

Nakamura expects to boost the company's operating margin
from 2.2% to 5%, and hit consolidated annual sales of $81
billion by 2004. Overseas production is expected to account
for about 40% of total manufacturing by 2004, up from 30%
today.

In addition to shifting manufacturing overseas, much of
those operational gains should open up competition between
factories. For instance, the manufacture of new products
would not necessarily be awarded to the division
originating the idea, but would be openly bid on by several
competing factories.

The plan also includes a consolidation of the company's
marketing group. Instead of a marketing component for each
product line, the whole effort will come under two
divisions: consumer electronics and home appliances. That
change involves a transfer of 1,000 of Matsushita's 290,000
employees from marketing to other divisions.

While Nakamura said the company needs to "deconstruct or
discontinue systems and corporate culture that were
successful in the 20th century but are now outdated," he
offered few details on which, if any, factories would be
sold, how specific divisions would be restructured or what
product lines would be discontinued. He did say that the
company would "unload a huge amount of assets over the next
three years."

What that means is anyone's guess, but analysts are viewing
this restructuring plan as too conservative and question
whether it will be enough to compete with the likes of Sony
and Hitachi. (Forbes Today 01-Dec-2000)


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

HANIL SYNTHETIC FIBER: 3 creditors swap debt for equity
-------------------------------------------------------
Three creditors of Hanil Synthetic Fiber Co. switched their
loans to equity investments last Friday to become the major
shareholders of the company, a Hanil official confirmed.
Hanvit Bank and the National Agricultural Cooperative
Federation (NACF) became the largest shareholders by
securing 4.97 million shares -- or 15 percent -- each.

KOREA GENERAL CHEMICAL: Sale likely to be done this month
---------------------------------------------------------
The government is seeking to complete the sale of Korea
General Chemical (KGC) to a domestic company this month.
Considered a prime example of a nonviable state-run
corporation, KGC and its majority shareholder, Korea
Development Bank, decided Nov. 30 to liquidate the company.

The bank, however, will promote the sale of the company
before requesting permission for liquidation from the
Ministry of Commerce, Industry and Energy.  According to a
ministry official, the bank has asked an external
consulting firm to assess the company's liquidation value
to compare with the offer price of the potential buyer.

The assessment report is to be presented to the bank around
Dec. 12. The official said that although the company is in
the process of liquidation, the government prefers its sale
to liquidation because when it is taken over by a private
company, job losses could be minimized.

Korea General Chemical is the sole local producer of
aluminum hydroxide, but a committee promoting the
privatization of state-run companies was unimpressed when
it picked prime candidates for liquidation earlier this
year. (Korea Herald 04-Dec-2000)

SSANGYONG CEMENT: Creditor says debt-for-equity swap option
-----------------------------------------------------------
Cho Hung Bank (CHB) will turn Ssangyong Cement Industrial
Co.'s debt into equity should the troubled cement maker's
self-rescue plan fail to proceed as planned, CHB President
Wee Sung-bok said yesterday.

If this happens, CHB will also participate in the
management of the company jointly with Taiheiyo Cement Co.
of Japan which has recently acquired a 29 percent stake in
the nation's largest cement-maker, Wee said.

"As main creditor bank, CHB has already received a
memorandum of understanding from its largest stakeholder on
the sale of his interest," the CHB president said. "In the
worst case, CHB will scrap its stake and make a debt-for-
equity swap amounting to the ownership interest."

After the debt-for-equity conversion is conducted, CHB and
Taiheiyo (Pacific) Cement will jointly take charge of
running Ssangyong Cement, Wee said.  However, CHB believes
that Ssangyong Cement will be able to stick to the schedule
of its self-aid program up till the end of this year, he
said.

"Ssangyong will fulfill its self-rescue measures as planned
because CHB and other creditors have provided for
supplementary steps to ensure that the company make good on
its promise."

Under the supplementary measures, Taiheiyo will take out
loans carrying an interest of 4 percent to 5 percent from
Japanese financial institutions and use them to repay
Ssangyong's debts whose interest ranges 16 percent to 17
percent.  In addition, current profits arising from
Taiheiyo's participation in the management of Ssangyong
Cement will be used in paying off the company's debts,
while creditors grant Ssangyong an interest rate cut for
its loans.

Currently, the average interest rate on Ssangyong's bank
loans stands at an annual 12 percent range but it will be
lowered to an average of 10 percent to 15 percent.
Ssangyong and Taiheiyo will also conduct joint marketing
activities in Korea, Japan and China in order to maximize
Ssangyong's profits so that the troubled company may pull
out of its debt crisis at the earliest date possible.

Wee said that after reviewing the progress of Ssangyong's
self-rescue measures, creditors will determine whether to
implement the supplementary steps.  Unveiling a package of
self-help measures for the world's 13th largest cement-
maker in late October this year, CHB predicted that
Ssangyong would complete its rehabilitation program by the
end of the year.

Under the rationalization program, Ssangyong will reduce
its debts by 1.62 trillion won this year through assets
sales and a debt-for-equity swap, while it will raise 900
billion won by selling Ssangyong Information &
Communications Corp. to a foreign buyer. (Korea Herald 04-
Dec-2000)


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

ANGPING AND ASSOC.SECURS.: BIR to pursue tax case against
ARMSTRONG HOLDINGS INC.: BIR to pursue tax case against
ASIA SECURITIES INC.: BIR to pursue tax case against
AT DE CASTRO SECURITIES: BIR to pursue tax case against
DANTE TAN: BIR to pursue tax case against
GUILD SECURITIES: BIR to pursue tax case against
PCCI SECURITIES: BIR to pursue tax case against
QUALITY INVESTMENTS CORP.: BIR to pursue tax case against
SECURITIES 2000 INC.: BIR to pursue tax case against
---------------------------------------------------------
The Bureau of Internal Revenue (BIR) has finally decided to
pursue a P1-billion (around $20 million) tax evasion case
against Dante Tan, eight stockbrokers and the other
participants involved in the alleged price manipulation of
BW Resources Corp. last year.

Aside from Tan, also liable were eight stock brokerage
companies that were found to have bought and sold BW stocks
over-the-counter without paying taxes: PCCI Securities,
Securities 2000 Inc., AT De Castro Securities, Asia
Securities Inc., Quality Investments Corp., Guild
Securities, Armstrong Holdings Inc., and Angping and
Associate Securities.

BIR Commissioner Dakila Fonacier had received the go-ahead
from the Department of Finance to send presidential friend
Tan and the others a tax assessment of their liabilities
worth about P950 million. "If they will refuse to pay, then
we would file a tax evasion case," said a ranking finance
official.

The BIR has completed the evaluation of the tax liabilities
involved in the BW mess. It found out that Tan and the
others have failed to pay capital gains tax on their stock
market and over-the-counter transactions in BW in 1999.
Among the revenue-collecting agencies, the BIR had
registered the biggest shortfall of P33 billion as of
October. The Bureau of Customs and the Treasury have been
chalking up surpluses in their collections.

The BIR said a transaction done on the trading floor would
entail a capital gains tax of 0.05 percent while an OTC
transaction was liable to a 10-percent tax on the first
P100,000 and 20 percent on succeeding deals once the shares
were unloaded. Also, BW should have paid documentary stamp
taxes of 50 centavos for every 200 shares transacted.

The finance official stressed that the government was
gradually getting back investor confidence and credibility
following the move of the Securities and Exchange
Commission months ago to charge 39 individuals including
Tan, Lucio Co, Jerry Ocier, David Narvasa and Carmelo
Santiago for the BW stock scam. The SEC made its
recommendation to the justice department but cases have yet
to be filed against Tan and the rest.

Tan, the brokers and 38 individuals were accused of insider
trading and stock price manipulation. The local bourse
witnessed an increase in BW's shares price by more than
1,000 percent. President Estrada had earlier instructed
Finance Secretary Jose T. Pardo "to leave no stone
unturned" and "to spare nobody, including (my) friends" in
the BW investigation for fraud and manipulation. Also
charged by the SEC were Hok Kee Lay Investment and New
Dynasty International. (Philippine Daily Inquirer  04-Dec-
2000)

NATIONAL STEEL CORP.:Creditors oppose liquidator lease plan
-----------------------------------------------------------
Creditors Philippine National Bank and the Land Bank of the
Philippines have asked the Securities and Exchange
Commission to reject the proposal by National Steel Corp's
liquidator for blanket authority to lease out NSC's steel
facilities in Iligan province.

PNB and Land Bank said the plan will not benefit NSC's
creditors, adding that creditors are currently negotiating
with a serious and interested investor for NSC's plant.
The banks said the interested investor, which they did not
identify, has already conducted due diligence on the
condition of NSC's machinery and equipment.

Documents submitted to the SEC show that Glencore
International and Ispat were among the interested investors
in NSC. PNB earlier rejected the proposal of Allengoal
Steel Fabrication and Trading Co to lease NSC's steel
complex.  "To allow a temporary lease will in no doubt
alter negatively the condition of the plant's facilities as
earlier determined by the aforesaid investor...," the two
banks said in their opposition to the leasing proposal
submitted to the SEC.

The banks said the lessee as a short term operator may not
religiously preserve and maintain the steel plant in order
to minimise expenses and maximise profit. PNB and the Land
Bank said they are "more inclined for a more definite,
if not absolute, solution to the instant case, rather than
a piecemeal or temporary solution which is only perceived
to work to the prejudice of NSC's creditors."  (AFX News
Limited  04-Dec-2000)

PHILIPPINE TELE.& TELE.CORP.: Mounting debts, annual loss
---------------------------------------------------------
Philippine Telegraph and Telephone, Corp. (PT&T) is
asserting that the government's landline-rollout mandate is
contributing heavily to the company's swelling debt totals
and poor financial performance. Consequently, it plans to
ignore further compliance with the mandate and shift its
focus in the new year.

The company explained the investment on the rollout of
telephone lines was one of the reasons for the ballooning
debts. PT&T currently has PhP8.9 billion worth of debts, of
which a total of PhP6 billion is dollar-denominated.

The company's disconnections also are cited as one factor
for the company's weak performance -- with a 1.19-billion
Philippine peso ($23.96 million at PhP49.667=$1) net loss
this fiscal year, compared with the previous year's loss of
PhP770.5 million ($15.51 million).

Amid huge telephone disconnections this fiscal year, the
Santiago-led PT&T will be deferring the completion of its
landline rollout required under the law, and instead
concentrate on marketing its landline prepaid service.
PT&T is one of those firms facing sanctions from the
Natonal Telecommunications Commission (NTC) for failing
short on the mandated three-year 300,000 landline rollout
project.

Since the second quarter of 1998 -- the deadline for
companies to complete rollout -- PT&T was able to
install only 155,417 telephone lines, including public
calling offices. The company, reported 12,000 discon-
nections this fiscal year, cited the decreasing business
prospects for landline operations. It lost a net of 7,179
landline customers this fiscal year, ending with only
57,156 subscribers.

"It is part of our clean-up operations," said PT&T
president and chief executive officer Marilyn E. Santiago.
"We disconnected more than 12,000... but we were also able
to connect some 5,000 landlines."

Ms. Santiago added that with the very competitive telecom
environment, it would be unfair for players to continue the
rollout requirement. "It is not an intentional want not to
complete the rollout but it is more of a market issue. If
the market is not there, I think it is unfair for the
players to ask them to complete something that does not, in
the end, make a return for them. So it is not a wanton
disregard for the rules but I think there has to be
reasonableness injected in the process," said Ms. Santiago.

Executive Order 109 requires cellular mobile and
international gateway facility licensees to install 400,000
and 300,000 landlines, respectively. Companies with both
licenses are required to roll out 700,000 lines. The law
was intended to improve the telephone density of the
country.

"But NTC should also give us credit for our PCOs (public
calling offices) deployed in the rural areas. Including
those phones, we know we have substantially complied, which
is around 87%, on the mandate," said Ms.
Santiago.

PT&T is currently in discussion with creditor banks for the
definitive agreement for the restructuring of its debt,
which terms include conversion of a third of the bank's
exposure to equity in the company. PT&T is pushing for the
prepaid landline service, similar to telecom giant
Philippine Long Distance Telephone Co.'s (PLDT) strategy,
to lessen credit risks.

The company's landline prepaid service, which was launched
last March has already generated 10,000 new subscribers.
(Business World  04-Dec-2000)


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

KUANG HOLDING CO.LTD.: Restructures debt
KUANG PEI SAN FOOD PRODUCTS PLC: Restructures debt
--------------------------------------------------
Kuang Pei San Food Products Public Company Limited has
rescheduled the debt of its affiliate with Pompui.
According to Kuang Pei, it had guaranteed the credit term
of affiliate Kuang Holding Co. Ltd., pusruant to a 1998
shareholders meeting. Kuang Pei was to be responsible for
payment of the debt by April 21, 2000. That debt now totals
428,556,587.87 baht.

At a board meeting on Nov. 30, the board agreed to the
restructuring of that debt, under which Kuang Pei will pay
Pompuui 428,556,587.87 baht within 15 years, with a 3-year
grace period, beginning January 1, 2001.

THAI ELECTRONIC INDUSTRY: Submits rehabilitation plan
-----------------------------------------------------
Thai Electronic Industry Public Company Limited, through
its appointed planner Premier Planner Company Limited,
completed and submitted its rehabilitation plan to the
Central Bankruptcy Court on the Nov. 29.

THAI PETROCHEM.INDUS.: Faces condensate splitters closure
---------------------------------------------------------
The delay over a decision on a debt restructuring plan for
Thai Petrochemical Industry (TPI) could force the closure
of the company's two condensate splitters, a company source
said on Friday.

"We have no working capital and can't buy the crude needed
to keep both units operating," he said.

TPI's condensate splitters, a new 150,000 barrel per day
(bpd) unit and an older 60,000 bpd facility located at Map
Ta Phut in the south, process crude instead of condensates.
Its older unit, which has been shut since mid-November for
planned maintenance, could miss its restart date of
December 7 if the company fails to secure adequate
feedstock, the source said.

The newer unit, which was brought onstream on October 25,
could be closed as early as next week for the same reasons,
he said. The unit was currently operating at about 90-95
percent. On Thursday, Thailand's Central Bankruptcy Court
delayed a decision on the controversial $3.8 billion debt
restructuring plan until December 12.

The debt restructuring plan would hand control of the
company to a group of banks and accountants and workers
fear huge job losses under the new management. A planned
work stoppage by 3,000 employees on Thursday fizzled out
when news of the delay was released. (AsiaWise  04-Dec-
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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