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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

           Wednesday, December 6, 2000, Vol. 3, No. 237

                                   Headlines


* C H I N A  &  H O N G  K O N G *

CHAMPION DESIGNERS LTD: Facing winding up petition
CHINA ELECTRONICS INDUS.LTD: Facing winding up petition
EMPEROR TECHNOLOGY VENTURE: Posts 1H loss
FAITH KING INT'L LTD: Facing winding up petition
FIRST ECOM: Operating loss behind cost cuts
FORTUNE OIL: Judge to decide on its liquidation path
GUANGNAN HOLDING: In sale talks on non-core sectors
HONG KONG CONSTRUCTION: Sued for payments owed
ORIENT CORP.: Posts half-year loss on loan set-asides
ZHENGZHOU BAIWEN: Buyout saves retailer's shares


* I N D O N E S I A *

PT PASIFIK SATELIT NUSANTARA: Debt rehab delayed; Q3 loss


* J A P A N *

BRIDGESTONE: To post $450M loss to cover Firestone claims
PRO-PYONGYANG GEN.ASSN.: Administrators to 13 affiliates
SEGA CORP: Shares continue to fall, Q4 loss expected


* K O R E A *

CHEJU BANK: Unions refusing to endorse reform plans
KWANGJU BANK: Unions refusing to endorse reform plans
KYONGNAM BANK: Unions refusing to endorse reform plans
PEACE BANK: Unions refusing to endorse reform plans


* M A L A Y S I A *

CELCOM TIMUR: Gets rating downgrade
FARLIM GROUP: Signs for credit facility


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

NATIONAL STEEL CORP.: Creditors eye Glencore to save firm
VICTORIAS MILLING CO.: SEC approves alternate rehab plan


* S I N G A P O R E *

NM HOLDINGS: Warns of annual loss possibility


* T H A I L A N D *

THAI PETROCHEM.INDUS.: Stoppages widen to pellet plants


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

CHAMPION DESIGNERS 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
Bank of China, Hong Kong Branch for the winding up of
Champion Designers Limited. A notice of legal appearance
must be filed on or before December 26.

CHINA ELECTRONICS INDUS.LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 20 on the petition of
The China State Bank Limited for the winding up of China
Electronics Industrial Limited. A notice of legal
appearance must be filed on or before December 19.

EMPEROR TECHNOLOGY VENTURE: Posts 1H loss
-----------------------------------------
Emperor Technology Venture Ltd. posted a $16.43 million
loss for the first six months of the financial year ended
Sept. 30. That was a turnaround from a profit of $27.84
million for the same period the year before. Turnover was
$149 million, and the loss per share was 2.85 cents. No
dividends were declared.

FAITH KING INT'L LTD: Facing winding up petition
------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 17, 2001, on the
petition of Hua Chiao Commercial Bank Limited for the
winding up of Faith King International Limited. A notice of
legal appearance must be filed on or before January 16.

FIRST ECOM: Operating loss behind cost cuts
-------------------------------------------
Nasdaq-listed First Ecom.com has cut its workforce by 25
per cent and lowered senior management salaries by a third
as part of a cost-cutting drive.  The Hong Kong-based
company, which provides online traders with electronic
payment processing systems, said it had laid-off 14 junior
non-core business staff on Friday.

"In the current market environment we have to preserve
capital and focus on sales," said a spokesman.

First Ecom - which achieved a full Nasdaq listing this year
- announced an US$850,000 operating loss for August. The
spokesman said the company had US$31 million in the bank.
"We are on a cash efficiency drive and not just slash and
burn," he said.

The spokesman said the chances of raising more capital in
the short-term was slim, however the company expected to
become profitable within five years.  First Ecom said
Ermanno Pascutto, a member of its board of directors since
March last year, had been named chairman.

Mr Pascutto, a former deputy chairman and executive
director of the Hong Kong Securities and Futures Commis-
sion, succeeds Gregory Pek, who remains on the board of
directors.  First Ecom's board has also agreed to select a
consulting firm to review company operations and maximise
efficiency.

The cutbacks have dealt another blow to the Internet
industry in Hong Kong which has seen about 1,000 employees
lose their jobs since June.  Last Wednesday, Chinadotcom-
owned store-front solutions provider InterMerchant pulled
the plug on its Web site.

The company sent out letters and e-mails to customers and
partners notifying them of the immediate closure of the
business.  The demise of the site was blamed on a
restructuring phase at the company's Nasdaq-listed parent.
Chinadotcom failed to return telephone calls. Shares in
First Ecom were trading at US$1.375 yesterday after
reaching a high of US$34 earlier in the year. (South China
Morning Post  05-Dec-2000)

FORTUNE OIL: Judge to decide on its liquidation path
----------------------------------------------------
A Hong Kong arm of London-listed Fortune Oil is facing a
court-supervised liquidation amid alleged debts owed to a
subsidiary of Sinochem, a Beijing based oil-trading
company.

Fortune Oil and Sinochem have been embroiled in a legal
dispute involving US$22.6 million, with claims and counter-
claims being fired in the past few years.  In the latest
development, Sinochem subsidiary Lief has filed a petition
to wind up Young Cruise - formerly Fortune Oil - one of the
British oil-trader's Hong Kong companies.

However, creditors of the SAR firm have voted to go ahead
with a voluntary winding-up of Young Cruise, a cheaper
alternative to court-supervised liquidation.  A hearing is
scheduled at the High Court to hear the petition filed by
Lief. It will be up to a judge to decide which path a
subsequent liquidation takes.

According to sources, the debt allegedly owed to Lief is
about US$6 million. However, this is being disputed by
Young Cruise. It is understood this sum is owed under a
guarantee.  Young Cruise chief executive Richard Wong said
creditors voted to voluntarily wind up the firm.

In February, Fortune Oil in London won the first round of
the series of claims and counter-claims involving Sinochem
when a judge ruled it was not liable to pay the oil trader
US$13 million.  The judge found that a contract dispute
between Sinochem and the now-defunct Fortune joint-venture
partner Chester International Pacific could not be answered
by Fortune. (South China Morning Post 05-Dec-2000)

GUANGNAN HOLDING: In sale talks on non-core sectors
---------------------------------------------------
Debt-ridden Guangnan (Holdings) aims to sell its non-core
operations to raise as much as HK$200 million, according to
a company executive.

Ye Xuquan, chairman of the Chinese food distributor and
supermarket operator, said yesterday the company had
entered into talks with a number of third parties to sell
two or three non-core operations.  These businesses
included feed-product and corn-processing factories and pig
farms.

Mr Ye said the company was still finalising the details
with the potential buyers and expected the disposal plan
would take up to 18 months to complete.  Of the assets
planned to be sold, talks on the sale of the pig farms
would soon be finalised, bringing in between HK$14 million
and HK$15 million.

Guangnan would concentrate in future on supermarket
operation and the business of livestock and foodstuff
distribution.  These were areas where the company had more
expertise, Mr Ye said.  A lack of experience and over-
expansion in non-core businesses was part of the reason for
the company's poor business performance, Mr Ye said.

At present, the company operates 47 Guangnan (KK)
Supermarkets.  Guangnan plans to launch up to five new
stores next year while certain stores will house specialist
sections.  Mr Ye said Guangnan's supermarket operation was
expected to remain in the red this year, but other areas
were expected to be profitable during the period.

Guangnan has HK$3.1 billion debt which will be restructured
under the proposed US$5.95 billion debt-restructuring plan
at its parent, Guangdong Enterprises Holdings.  After the
restructuring, Guangnan would have net assets of HK$430
million.  Guangnan has about HK$100 million cash in hand
which would be enough to support daily operations.

Meanwhile, Guangnan shareholders have approved a proposed
17-for-two rights issue at 10 HK cents to raise HK$773
million to repay part of its debt. (South China Morning
Post 05-Dec-2000)

HONG KONG CONSTRUCTION: Sued for payments owed
----------------------------------------------
Hong Kong Construction (Holdings) is facing writs against
it from subcontractors totaling more than $11 million.

The group, which changed its name from Kumagai Gumi (Hong
Kong) in February 1999, is one of Hong Kong's largest
contractors with contracts totaling a massive $18 billion
underway at the end of October. These include the Penny's
Bay reclamation, site of the new Disney theme park, several
projects on the Kowloon-Canton Railway Corporation's West
Rail scheme, Hong Kong's tallest residential tower at
Stubbs Road, widening of the Tolo Highway, Beijing's
National Grand Theatre and the Qingzhou Min river bridge
and airport highway in Fuzhou.

So far five writs have been issued in the High Court
against the company, although it is believed to owe
considerably more to subcontractors and suppliers. The
writs have been issued by the following firms:
*Yauki Construction for $3,011,710, $900,520, and $592,547;
*Horace Engineering for $4,189,173;
*Thoron (Keramik) for $943,128;
*Apex Construction for $771,558 and $115,150;
*Lock's Industries (HK) for $644,355.

A spokesman for Yauki Construction said the company had
been waiting about six months for payment of more than $4.5
million. "They have paid a little bit, about $200,000. We
have tried to get a meeting with Hong Kong Construction,
but they haven't decided yet whether they will see us," the
Yauki Construction spokesman said.

He said Yauki had been subcontracted to carry out general
building work on Hong Kong Construction's $414 million
contract to build a new block at Hong Kong Polytechnic
University in Hung Hom. Work on the 19-storey tower and two
storey annex building started in March 1999 and is due for
completion by the end of this month. Horace Engineering and
the other contractors refused to comment about their
outstanding payments.

In desperation, subcontractors have pulled staff and
equipment off some of Hong Kong Construction's sites in an
effort to force payment. This includes a $599 million
Territory Development Department contract to build the
Foothills bypass in Tuen Mun being done in joint venture
with British contractor, Amec International Construction.

A senior government source said the subcontractors had
later come back. "But we don't think they will stay very
long. We're obviously concerned," the source said.

"As a matter or policy we do not comment on affairs of
other companies. However in response to your queries we
advise as follows -- AMEC has not taken a larger stake in
any of the joint ventures AMEC has with Hong Kong
Construction, nor has the AMEC role changed," said David
Hurren, Amec Asia Pacific managing director. "AMEC has not
had to pay any subcontractors direct, all the joint
ventures are adequately funded."

Hong Kong Construction managing director Rupert Li Xiao Ru
did not return any telephone calls from iBusiness.
Industry insiders said the company's problems had arisen
because it had over-extended itself in Hong Kong's
competitive construction industry.

"They have told us they are awaiting a cash injection from
China Everbright," said one insider.

Together China Everbright International and China
Everbright Holdings own 70.48 per cent of Hong Kong
Construction, with each holding a 35.24 per cent stake.
In the first six months of this year, Hong Kong Construc-
tion (Holdings) posted an unaudited consolidated loss
attributable to shareholders of $72.9 million compared with
a $367.4 million loss in the same period last year.

Writing in the interim report, Hong Kong Construction chief
executive Chen Libo said, "The negative results were
largely due to losses in associate companies. Carefully
planned strategies are being implemented to reverse the
situation. The directors believe the restructuring of
assets will be completed this year with positive
implications for year-end results." (Hong Kong IMail 05-
Dec-2000)

ORIENT CORP.: Posts half-year loss on loan set-asides
-----------------------------------------------------
Orient Corp. recorded a consolidated net loss of 16.4
billion yen ($147.5 million) for the half-year ended Sept.
30, due to set aside provisions against corporate loans.
The consumer credit company was reporting group interim
results for the first time. It had a pretax profit of 26.7
billion yen, but it booked 50 billion yen of reserves
against corporate loans as a special loss.

ZHENGZHOU BAIWEN: Buyout saves retailer's shares
------------------------------------------------
Loss-making retailer Zhengzhou Baiwen has avoided becoming
China's first liquidated listed company as a restructuring
plan has been agreed upon over the weekend which involves
selling it to another company.

But experts believe the restructuring will be beneficial to
both shareholders and creditors, and will be a new way for
non-performing assets handlers to dispose of assets.
These are firms that specialize in turning debts into new
funds for new developments.

Zhengzhou Baiwen had 51 million domestic A shares listed on
the Shanghai stock market in 1996. Since then it has made
huge losses every year. Official media Xinhua News Agency
said the firm had assets of less than 600 million yuan
(US$72.48 million) and bank debts of about 2.5 billion yuan
(US$301.2 million) by the end of June this year.

Its largest creditor, China Cinda Asset Management
Corporation, which took over the 2 billion yuan (US$241
million) of creditor's rights in Baiwen from China
Construction Bank, had filed a suit at local court in
Zhengzhou in March to liquidate Baiwen. As no listed
company in China has been liquidated or delisted so far,
some experts hoped Baiwen would be the first case and be
beneficial for the healthy development of China's stock
market in the long run.

But Baiwen itself was expecting a restructuring of its
assets to bail it out, and it finally got it. A press
conference about its restructuring was held on Saturday
afternoon by China Cinda, the Zhengzhou city government and
the electrical appliance retailer Shandong Sanlian Group,
which is to take over the majority of Baiwen's debts.

According to the agreed plan, Shandong Sanlian will
purchase around 1.5 billion yuan (US$180.7 million) of
Baiwen's debts owed to China Cinda for 300 million yuan
(US$36 million). Baiwen shareholders will still keep their
shares and those who do not want their shares anymore can
sell them to Sanlian at a price decided by the
shareholders' general assembly.

China Cinda's remaining 576 million yuan (US$69.4 million)
creditor's rights in Baiwen will be sold to the parent
company of Baiwen and be guaranteed by the Zhengzhou
government.

"Cinda expects to recover another 300 million yuan (US$36
million) from the latter sale and recoup 600 million yuan
(US$72 million) in total," said Gao Guanjiang, director of
Cinda's equity right management department. "That means
Cinda will get back 28.9 per cent of the non-performing
assets."

Insiders said if Baiwen is liquidated, Cinda will retrieve
no more than 100 million yuan (US$12 million) worth of
assets. Meanwhile, Shandong Sanlian, one of the biggest
enterprises in Shandong Province, will get a "shell" to
list on the stock market, said Sanlian Chairman Zhang
Jisheng.

This means that Sanlian cannot issue its own shares, but
through the purchase can sell Baiwen shares.
This method of raising cash can reduce the time and trouble
for a listing and help Sanlian expand in markets outside
Shandong Province.

After the take-over, Sanlian will pump money into Baiwen to
keep it alive and try to make the enterprise grow fast and
steady, said Zhang. "This restructuring plan can best
protect shareholders' and creditors' interest and avoid a
negative impact on China's stock market," said Cinda's Gao.

However, the possibility that Baiwen will still be
liquidated does exist as the restructuring plan is still
subject to the approval of the shareholders' assembly which
meets on December 31, he said. (China Daily 04-Dec-2000)


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

PT PASIFIK SATELIT NUSANTARA: Debt-rehab delayed; Q3 loss
---------------------------------------------------------
P.T. Pasifik Satelit Nusantara confirmed that the closing
of its debt restructuring agreement has been delayed.  The
agreement -- which was signed in June -- calls for some
$213 million of outstanding debt to be restructured into
long-term obligations that will mature between 2002 and
2005.

The company, which provides satellite-based telecommunica-
tions products and services in Asia, said the delay
resulted from the complexity of the documentation needed
and a request by its lenders for more time to review
the agreement. PT Pasifik's lenders have agreed to try to
complete the agreement in the first quarter of 2001.

Meanwhile PT Pasifik Satelit Nusantara recorded a $12.36
million net loss for the third quarter of this year.
Cumulative losses for the first nine months of this year
reached $29.40 million or $0.37 a share. That's comparable
to the net loss of $29.86 million or $0.38 per share it
recorded for the same period a year ago.

Revenues for the three months ended September 30, 2000 were
$2.94 million, compared to $2.18 million during the
corresponding period a year earlier. Revenue for the first
nine months of the year reached $6.63 million, reflecting a
11.63% rise compared with $5.94m recorded during the same
period a year earlier.

Higher revenues in the third quarter and nine months
compared to the corresponding year-ago periods reflect
revenues from pre-commercial AceS handset sales, as well as
revenues from its new Data Communications services.

"The third quarter marked one of the biggest milestones in
company history as we officially launched ACeS service in
its first market, Indonesia, on September 27. BYRU, the
brand name for ACeS Indonesia, began initial service with
more than 1400 handsets in the hands of consumers following
our successful pre-commercial testing period. In the early
part of the fourth quarter, we've been encouraged with
initial marketplace reaction to the service in Indonesia,
and we are seeing steady growth in both subscribers
and usage of the system," the company said in a statement.

Consumer interest in ACeS service appears to be growing and
the manufacture and delivery of handsets is keeping pace
with consumer demand," said Adi R. Adiwoso, CEO and
president of PSN. On November 22, ACeS was launched in its
second market, the Philippines. Separately, PSN reported
that the closing of its previously announced debt
restructuring agreement has been delayed.

Under the agreement, signed in late June 2000,
approximately $213m of outstanding debts is to be
restructured into long-term obligations maturing between
2002 and 2005. The delay resulted from the complexity of
the debt and security documentation required to implement
the restructuring and from a request by PSN's lenders
for time to review certain aspects of the agreement.

Although the delays make it likely that the restructuring
will not close in 2000, PSN believes that the review will
not materially affect the restructuring agreement, and
PSN's lenders have agreed to push for completion in the
first quarter of 2001.

PSN controls 6 extended C-band transponders on the Palapa
C-1 and 2 standard c-band transponders on the Aguila II
satellite. ASIA Cellular Satellite (ACeS) -- The ACeS
mobile satellite telephony service was officially launched
to the Indonesian consumer market on September 27, 2000.
(Indoexchange News  05-Dec-2000)


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

BRIDGESTONE: To post $450M loss to cover Firestone claims
---------------------------------------------------------
Major vehicle tiremaker Bridgestone Corp. will set aside
$450 million this year to cover damage claims resulting
from lawsuits against its U.S. subsidiary Bridgestone/
Firestone.

Bridgestone President Yoichiro Kaizaki said in a statement
that reports that the damage claims could amount to $50
billion were "groundless," and that the U.S. subsidiary was
not considering filing for bankruptcy at this time. On
Monday, Bridgestone/Firestone Inc. officials in the United
States dismissed suggestions by plaintiffs' attorneys that
damage claims resulting from the ongoing lawsuit over
faulty tires could force the company into a bankruptcy
filing.

PRO-PYONGYANG GEN.ASSN.: Administrators to 13 affiliates
--------------------------------------------------------
The government's Deposit Insurance Corp. (DIC) will send
state-appointed administrators by the yearend to 13 failed
'Chogin' credit unions affiliated with the pro-Pyongyang
General Association of Korean Residents in Japan
(Chongryun), the head of the Financial Services Agency
(FSA) said Monday.

"It is crucial to send in administrators as quickly as
possible," Masaharu Hino told a news conference.

The 13 Chogin credit unions, all of which failed last year,
are due to be taken over by four Chogin credit unions
created through amalgamation of Chogin credit unions with
relatively sound management. The Financial Reconstruction
Commission (FRC) and DIC have begun work to grant taxpayers
funds to the four acquirers of the failed 13 to help
eradicate their negative net worth and have the four assume
the duty of refunding depositors on demand, government
sources earlier said.

The administrators will be tasked with looking into the
background that triggered the failures of the 13 and with
shedding light on how the managers at the 13 lenders may be
responsible for the insolvency of their institutions, FSA
officials said. But the credit unions may respond angrily
to the proposals to send in the administrators to examine
their management, they added.

The ruling coalition New Conservative Party, the opposition
Democratic Party of Japan and some other political parties
have criticized banking regulators for the failure to
elucidate the managers' responsibility for the collapses of
the lenders, Hino noted. "It is necessary for
administrators to examine their management very closely"
before using public funds to balance the books, Hino said.

Chogin failures concerned those in 13 prefectures --
Aomori, Miyagi, Chiba, Tokyo, Niigata, Nagano, Fukui,
Aichi, Shimane, Hiroshima, Yamaguchi, Fukuoka and
Nagasaki. The FSA completed the process of inspecting the
books of the four would-be acquirers of the 13 by Monday
and communicated its findings to the four, the FSA
officials said. The checkups began in July. (Japan Economic
Newswire  04-Dec-2000)

SEGA CORP: Shares continue to fall, Q4 loss expected
----------------------------------------------------
Sega Corp. shares fell as much as 7.9 percent due to a lack
of clear signs that earnings will recover at the
manufacturer of Dreamcast video-game consoles. The shares
dropped as much as 88 yen to 1,027, and were last down 6.6
percent to 1,042 yen. Meanwhile, Sega said it expected a
fourth straight year of losses for the year ending March
31.


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

CHEJU BANK: Unions refusing to endorse reform plans
KWANGJU BANK: Unions refusing to endorse reform plans
KYONGNAM BANK: Unions refusing to endorse reform plans
PEACE BANK: Unions refusing to endorse reform plans
------------------------------------------------------
The four banks ordered to submit revised management plans
containing written consents from their unions still have
not complied, an official of the Financial Supervisory
Service said yesterday.

"The four banks, Peace, Kwangju, Cheju and Kyongnam, still
haven't submitted the revised self-restructuring plans with
the unions' consent attached," said Lee Jong-ho, director
of bank inspection.  "However, we expect the banks to
present the plans by this week after discussing the matter
thoroughly."

The Financial Supervisory Commission (FSC) has told these
four banks, and Hanvit Bank, to submit their revised
management plans before the FSC regular conference sessions
begin Friday. (Korea Herald 05-Dec-2000)


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

CELCOM TIMUR: Gets rating downgrade
-----------------------------------
Rating Agency Malaysia (RAM) has lifted the short term
rating of Celcom Timur (Sarawak) Sdn Bhd's (CTS) RM100
million revolving underwritten facility (RUF) from Rating
Watch and downgraded the rating from P3 to NP.

In a statement Tuesday, RAM said the non-investment grade
rating reflected the credit risk of CTS' largest customer,
Celcom (M) Sdn Bhd which contributed over 95 percent of its
revenue stream. Celcom was also CTS' major shareholder with
a 60 percent stake in the company.

The rating downgrade on CTS further reflected the slow
receivable collection from Celcom which has put a strain on
the former's liquidity position, RAM added. Additionally,
RAM was of the view that financial support from the
company's 40 percent shareholder, Sarawak Electricity
Supply Corporation would, at best, be limited to its
minority interest in CTS.

CTS' principal activity is in the operation of the fibre
optic transmission network in Sarawak. CTS' RM100 million
RUF was earlier placed on RAM's Rating Watch concurrent
with the Rating Watch on Celcom's debt facilities pending
the completion of Celcom's debt restructuring scheme.

Celcom recently concluded the debt restructuring exercise
and the ratings of Celcom's restructured Tranche 1, 2 and 5
of the multi-structure facility (MSF) were removed from
Rating Watch and accorded enhanced long term and short term
ratings of BBB3(s) and P3(s) respectively.

The enhancement to the ratings of Celcom's MSF took into
account the imposition of certain structural covenant
protections in the MSF. As an unsecured creditor of Celcom,
CTS ranked below the MSF lenders. (Malaysian National News
Agency  05-Dec-2000)

FARLIM GROUP: Signs for credit facility
---------------------------------------
Penang-based construction company Farlim Group (M) Bhd is
proposing a series of exercises to fund its expansion,
reduce its borrowings and generally put it on a better
financial footing.

A statement issued on behalf of Farlim by Commerce
International Merchant Bankers Bhd yesterday said the
company had signed a subscription agreement with three
syndicated lenders to subscribe for 3% non-tradable
redeemable convertible secured bonds (RCSB) as settlement
of its existing US$20mil syndicated revolving credit
facility.

The syndicated lenders are Aseambankers Malaysia Bhd,
Malayan Banking Bhd and Arab-Malaysian Merchant Banker Bhd.
Farlim also proposes: A private placement of up to 12
million new shares, representing 10% of the company's
existing issued and paid-up share capital, to parties to be
identified at an issue price to be determined later; A
special issue of up to 41 million new shares to bumiputra
investors at RM1 each; An increase in the company's
authorised share capital to RM400mil from RM300mil.

According to the statement, the proposed debt settlement
encapsulates the capitalisation of interest outstanding/due
under the US dollar syndication from Sept 9, 1998, up to
the date of its conversion.  It also includes the
conversion of the existing US dollar syndication arranged
by Aseambankers Malaysia together with all capitalised
interest into non-tradable RCSB, and the deferment of the
repayment of principal instalment, amounting o US$13.35mil
of the US dollar syndication due from December 9, 1998, up
to the date of its conversion under the proposed debt
settlement.

On the proposed private share placement, the statement said
the proceeds would be used to finance the development of
Kompleks Farlim, a hawkers' complex and a market project at
Penang, while the special bumiputra issue would part-
finance the development of a parcel of freehold land in
Johor which was acquired from Prolink Development Sdn Bhd.
The company expects to submit the proposals to the
Securities Commission within three months. (Star Online 05-
Dec-2000)


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

NATIONAL STEEL CORP.: Creditors eye Glencore to save firm
---------------------------------------------------------
The National Steel Corp., smarting from further losses
incurred by the maintenance of its rusting mills, may soon
start humming with business activity again as its creditors
have endorsed an investor perceived to be capable of
infusing fresh capital into the beleaguered steel firm.

The steel firm's creditors - Philippine National Bank
(PNB), Credit Agricole Indosuez, and Land Bank of the
Philippines (LBP) - appear to have zeroed in on Glencore,
among two other prospective investors, as the most logical
choice which can put NSC back on track to much-needed
recovery.

Glencore, which submitted its investment proposal to NSC's
creditors last Oct. 24, offered to infuse $150 million into
the cash-strapped steel firm to jump start its comeback in
the industry. With an additional $200 million in fresh
working capital, the investor also is eyeing the immediate
recovery of the debt-riddled steel firm unencumbered by
legal cases usually associated with such a rehabilitation
process.

The steel firm's creditors expressed discomfort with the
other two prospective investors - namely, Allengoal and
Ispat - due mainly to their perceived inability to salvage
NSC from liquidation. Allengoal, for instance, did not sit
well with the creditors since they think that having only
an authorized stock of P5 million, it has no financial
capacity to carry out its proposal to save the beleaguered
steel firm.

The creditors also cited Allengoal's unsettled obligation
to NSC amounting to P23 million as ground for disqualifi-
cation, coupled with the fact that Ben Tiu of iBank has
withdrawn its support from it. The entry of Glencore into
the picture of NSC struggling to avoid being liquidated has
fueled speculations that the beleaguered steel firm may
eventually be on the road to regaining its foothold in the
country's tottering steel industry.

The Securities and Exchange Commission has ordered the
liquidation of NSC after almost a year of waiting for the
so-called white knight to salvage it from insolvency. The
steel firm's Malaysian majority-shareholder also opposed
the rehabilitation plan mapped-out by an SEC-installed
interim receivership committee, partly prompting the agency
to issue such an order. (Philippine Star  05-Dec-2000)

VICTORIAS MILLING CO.: SEC approves alternate rehab plan
--------------------------------------------------------
The Securities and Exchange Commission has approved an
alternative rehabilitation plan proposed by the management
committee of Victorias Milling Co Inc. At the same time,
the SEC rejected another plan proposed by the board of
Victorias.

"The commission believes, and is convinced, the management
committee's alternative rehabilitation plan is fair and
reasonable under the circumstances and that it will serve
the best interest of creditors and stockholders," the SEC
said in a statement.

The proposed plan provides for conversion of 1.1 billion
pesos of unsecured debt into equity, 2.4 billion pesos of
debt into convertible notes and injection of 300 million
pesos in the form of loans or advances and/or equity.


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

NM HOLDINGS: Warns of annual loss possibility
---------------------------------------------
Laminated plastics-materials manufacturer NM Holdings
warned that it may report a net loss for the year ending
Dec. 31 despite improved profit contributions from its
business in Malaysia, Indonesia and Vietnam. The company
said weak market conditions in China "will have an adverse
impact on the group's results, arising from further
provisions in inventories and bad debts."


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

THAI PETROCHEM.INDUS.: Stoppages widen to pellet plants
-------------------------------------------------------
Operations ceased yesterday at Thai Petrochemical
Industry's 10 plastic pellet factories in Rayong following
the stoppage at the group's two oil refineries last Friday.

The oil refineries had been shut after Effective Planners
Co, administrator of TPI's business rehabilitation plan,
turned down TPI's request to make fresh crude oil
purchases. Naphtha, a key raw material for plastic pellet
production, is processed from crude oil.

The widening shutdown of TPI operations is part of a war of
nerves between the conglomerate, its planner and creditors
over the resolution of debts totalling $3.2 billion.
Creditors have approved the TPI rehabilitation plan, but a
hearing of the Central Bankruptcy Court on the agreement
has been postponed to Dec 12.

TPI chief executive Prachai Leophairatana yesterday
requested approval again from Effective Planners' managing
director Anthony Norman to buy 300,000 barrels of crude oil
or to import naphtha, but he had not yet received a reply,
said Silapin Buranasilpin, a TPI assistant vice-president.
Mr Prachai had made the same request in writing to Mr
Norman on Friday, Mr Silapin said.

"If you (Mr Norman) refuse to approve the company's request
to buy such crude you must be responsible for all the
damages so incurred," the letter said.

Mr Silapin said the company's workers had not gone on
strike as had been claimed, because they were still coming
to work, but the shortage of raw materials had left them
idle. The Labour Ministry had warned TPI workers earlier
that a strike would violate Labour Law conditions aimed at
safeguarding national security by prohibiting stoppages in
energy-related industries.

Mr Silapin said the company's crude oil stocks as of last
Friday were 140 million litres, just enough to meet
mandatory reserve requirements set by the government.
"This proved that TPI is really short of raw material
supplies," he said.

TPI's 100 petrol stations, of which 30 are run by TPI
itself, will also begin to feel the pinch over the next few
days. The shutdown of the oil refining and plastic pellet
operations would cost TPI at least 140 million baht per day
in lost revenue, said Wachirapanthu Promprasert, the
company's chief financial officer.

Losses would increase to 350 million baht a day if all TPI
subsidiaries were forced to cease operations, he said.
Mr Silapin conceded that Effective Planners had earlier
offered TPI the opportunity to reduce oil refinery capacity
to 90,000 barrels per day in December and 70,000 barrels
per day in January in return for approval of crude oil
purchases. The offer was considered unacceptable because
TPI's break-even point for its refining operations was
125,000 barrels per day, he said.

"Effective Planners has pressured us on every side. It even
rejected a request for plant maintenance to squeeze us into
reducing capacity, which would force us to lay off
workers."

A source at the Rayong plastic pellet plants confirmed
yesterday that TPI had been gradually shutting down
operations since Saturday due to raw material shortages.
However, the staff continued to come to work as usual and
had not staged any protests, pending the outcome of talks
with TPI management in Bangkok.

Mr Norman said late yesterday that he had not yet received
any reports of work stoppages at the Rayong plants. "As far
as I know, based on reports given to me, operations of all
plants in the complex are still normal, so, I cannot make
any comment on the reported work stoppages," he said.

He said the shutdown of the oil refineries on Friday had
been planned by TPI management, which knew its request to
purchase much more crude than it could afford would be
rejected. He threatened to take legal action against TPI if
it did not carry out the planners' instructions to adjust
the volume of crude oil purchases. (Bankok Post  05-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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