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     T R O U B L E D   C O M P A N Y   R E P O R T E R

                              A S I A   P A C I F I C

           Thursday, December 14, 2000, Vol. 3, No. 243

                                      Headlines


* A U S T R A L I A *

CRANE GROUP: Plant closures, jobs loss; shares sink
SATELLITE GROUP: White knight developer submits rescue deal


* C H I N A  &  H O N G  K O N G *

ANPHELIA CO.LTD.: Facing winding up petition
CHINA GATE TEXTILE LTD: Facing winding up petition
CHONG WA CONSTR.ENGIN.LTD: Facing winding up petition
E.S.I. DESIGN & PROJECT(CNSLT.): Facing winding up petition
FAMOUS DRAGON ENG'G LTD.: Facing winding up petition
HONGKONG CONSTRUCTION HLDGS.: To seek standstill pacts
KIN DON HOLDINGS: Facing winding up petition, shares dive
WAH LEE RESOURCES HLDGS.: Shares plunge 15.8% over rumors


* I N D O N E S I A *

PT ASTRA INT'L: Rights offer planned to repay 2002 debts
PT GRIA WIJAYA PRESTIGE: GWP threatens to sue IBRA


* J A P A N *

KANSAI INT'L AIRPORT: No money coming, ministry says
TIANJIN INT'L TRUST: Close to defaulting on Samurai bond


* K O R E A *

CHEJU BANK: To merge with Shinhan soon
HANBO IRON & STEEL: Strategic alliance, new bids sought
KYONGGI HAEDONG MUT.SVGS.& FIN.CO.: FSS suspends ops
REGENT MERCHANT BANK: Normalcy unlikely soon
SAMSUNG ELECTRO-MECHANICS:Debt plan angers Portuguese banks
SEOUL HAEDONG MUT.SVGS.& FIN.CO.: FSS suspends ops


* M A L A Y S I A *

UNIPHOENIX CORP: To sell assets for working capital


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

MONDRAGON INT'L PHILS.: Creditor banks wanted to run Mimosa
NATIONAL STEEL CORP.: Glencore ready to invest up to $150M
URBAN BANK: S'holders approve rehab plan, director slate


* T H A I L A N D *

RATANA REAL ESTATE: Posts huge annual loss
SINOTHAI ENGIN.& CONSTR.: Debt plan details
THAI PETROCHEM.INDUS.: Asks Sup.Ct. to change judges


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

CRANE GROUP: Plant closures, jobs loss; shares sink
---------------------------------------------------
Victoria emerged a loser from the restructure of metals and
building products manufacturer Crane Group yesterday. The
group, which yesterday warned of a 25 per cent fall in
first-half profit, said it would close plants in Victoria
and New Zealand and transfer the bulk of the work to South
Australia, securing the 230 jobs at its two plants there.

About 230 jobs would be lost with the closure of Crane's
Huntingdale plant and the phasing out of brass extrusion
production at its Maidstone plant.  Managing director John
Ingram said the restructuring was necessary in the wake of
the construction industry slowdown, which was worse than
expected.

"These consolidations will result in highly efficient,
lower-cost manufacturing facilities for consolidated
extrusions, Crane's aluminium extrusions and Iplex
Pipelines," Mr Ingram said.

The restructuring would lift production at its injection-
moulding plant at Elizabeth by 20 per cent to 25 per cent.
The plant supplies fittings for Iplex plastic pipeline
systems around Australia.  The 120 jobs at the plant, in
which Crane had invested heavily, were now secure, Mr
Ingram said.

Production from Crane's Huntingdale plant would be
transferred to its aluminium extrusion plants in Angaston
in South Australia and Penrith in NSW.  The 110 jobs at the
Angaston plant, which Crane bought from Boral in November
for $55 million, were now secure, Mr Ingram said.

"There had been some layoffs there before we purchased it,"
he said.

There was little doubt if Boral still owned the plant more
redundancies would have followed.  Mr Ingram said Crane
would invest close to $1 million upgrading the plant in the
first six months of next year to boost its production
capacity by 10 per cent to 20 per cent.

Yesterday's restructuring would generate a $3.6 million
abnormal charge in its half-year results, Mr Ingram said.
Shares in Crane dropped 15 to $7.15 yesterday. (The Herald
Sun 13-Dec-2000)

SATELLITE GROUP: White knight developer submits rescue deal
-----------------------------------------------------------
Property developer Ian Widdup has offered a rescue package
to the beleaguered shareholders in the Satellite Group on
the eve of a crucial creditors' meeting.

Mr Widdup plans to move on Satellite Group through his
Bridge Street Developments group, saying he had received
"overwhelming in-principle support for the plan" from about
40 per cent of shareholders. The offer is to buy the
existing operations of Satellite Group, now in voluntary
administration, for $200,000, with the view to "backdoor"
listing other businesses via the company.

Share trading in Satellite Group was suspended in July when
the shares were at 15c. News of the offer came a day after
the Australian and Securities and Investments Commission
launched legal proceedings against the founder of the
Satellite Group, Mr Greg Fisher.

ASIC chairman Mr David Knott said on Monday that ASIC
alleged that both Mr Fisher and former Satellite executive
manager Mr Jonathon Broster had breached their legal duties
as officers of the company and failed to act in good faith
in the interests of the Satellite Group. ASIC is also
undertaking inquiries into the float and management of the
Satellite Group. On December 4, Mr Fisher appointed
administrators to his personal affairs under the Bankruptcy
Act.

The 3,000 shareholders in Satellite, who paid 50c a share
in the 1999 public float, will collectively own 9.9 per
cent of the revitalised group with Mr Widdup and another
Bridge Street director, Mr Jim Byrnes, owning 45.5 per cent
each. The offer has been made to the administrator of
Satellite Group, Mr Tony McGrath, of KPMG.

Mr Byrnes said yesterday Bridge Street Developments would
administer the shell of Satellite and two former Satellite
assets, 209-221 Pyrmont Street and The Harold Park Hotel,
Glebe, which Bridge Street bought in July, would be put
back into the listed vehicle. The Bauhaus Apartments
project was also expected to return to the fold of the new
company.

"The new vehicle would be able to use the spread of
Satellite's current 3,000 shareholders and, in time, we can
inject between $250 and $300 million of new projects into
the former Satellite Group, which helps all shareholders,"
Mr Byrnes said. "We are also in discussion with the first
mortgagee over the two pubs, the Beresford and Beauchamp,
that Satellite is selling."

Mr Widdup said his plans were to create five core areas of
business within the revised public company - none of which
would be necessarily focused on the gay and lesbian market.
(Sydney Morning Herald 13-Dec-2000)


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

ANPHELIA CO.LTD.: Facing winding up petition
--------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on February 14, 2001, on the
petition of Li Yuk Fong for the winding up of Anphelia
Company Limited. A notice of legal appearance must be filed
on or before February 13.

CHINA GATE TEXTILE LTD: Facing winding up petition
--------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on February 27, 2001, on the
petition of Hua Chiao Commercial Bank Limited for the
winding up of China Gate Textile Limited. A notice of legal
appearance must be filed on or before February 26.

CHONG WA CONSTR.ENGIN.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 Hui Kwai Yuen, Li Hak Chung, Mak Chi Chung, Li
Hak Ching, Pang To Kwan and Lo Wai for the winding up of
Chong Wa Construction Engineering Limited. A notice of
legal appearance must be filed on or before January 15.

E.S.I. DESIGN & PROJECT(CNSLT.): 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 Po Sang Bank Limited for the winding up of E.S.I. Design
& Project (Consultancy) Limited. A notice of legal
appearance must be filed on or before January 8.

FAMOUS DRAGON ENG'G 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 Kwan Hok Kan for the winding up of Famous
Dragon Engineering Limited. A notice of legal appearance
must be filed on or before January 15.

HONGKONG CONSTRUCTION HLDGS.: To seek standstill pacts
------------------------------------------------------
Hong Kong Construction Holdings Ltd. is in the process of
asking for immediate standstill arrangements with its banks
in Hong Kong.

The company said it appointed KPMG to advise it on a
possible rescheduling of its financial obligations,
including HK$1.9 billion of indebtedness to the banks and
another US$37 million of floating rate notes that were due
for repayment on Dec. 11.

Hong Kong Construction, in which China Everbright
International owns a 35.25 percent stake, said it has
indicated to its bank creditors that it would request an
informal standstill arrangement pending a business and
financial report from KPMG due later this month.

Meantime, the Hong Kong Economic Times newspaper cited
Rupert Li, the company's managing director, as denying
market rumors that Hong Kong Construction is up for sale,
and that China Everbright has not officially or
unofficially expressed an interest in selling its stake in
the local construction company.  At midday, Hong Kong
Construction shares were down 4.7 percent at HK$1.23.
China Everbright International shares were down 6.8 percent
at 34.5 HK cents. (Quamnet News 13-Dec-2000)

KIN DON HOLDINGS: Facing winding up petition, shares dive
---------------------------------------------------------
Shares of garment and leather products distributor Kin Don
Holdings fell 19.15% yesterday to close at HK$0.03 after
the company said its convertible debentures holder, Stone
Church, had filed a winding-up petition against the
company. The petition involves debt totaling US$4.42M, and
is scheduled to be heard at the Hong Kong High Court on
February 28, 2001. The company's outstanding indebtedness
totals about HK$135.53M. Kin Don said it was considering
various possible fund raising methods and a capital
reorganization to settle the debt.

WAH LEE RESOURCES HLDGS.: Shares plunge 15.8% over rumors
---------------------------------------------------------
Share of Wah Lee Resources Holdings Ltd. plunged upwards of
40 percent after the Apple Daily newspaper reported market
rumors that two of its creditors were divided on how the
investment holding company should be restructured and had
plans for its liquidation. At 2:58 p.m. local time, Wah Lee
shares were trading at 4.8 HK cents, down 15.8 percent from
the previous day, on which the shares lost 67 percent.


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

PT ASTRA INT'L: Rights offer planned to repay 2002 debts
--------------------------------------------------------
Carmaker PT Astra International plans to sell shares to its
shareholders in a rights offer to help it repay debts due
at the end of 2002.

According to a report in the Business Times quoting Astra
president-director Theodore Rachmat, the company has the
bulk of its debt to repay by then, totaling some $695
million and 819 billion rupiah. Astra might also sell off
assets, including its telecommunications and timber-based
product business, in order  to raise cash.

Rachmat also said Toyota Motor Corp. wants to raise its
shareholdings in its vehicle venture with Astra to at least
50 percent from the current 49 percent. Astra also expects
its motor- venture with Honda Motor to sell between 1.5
million and 2 million bikes a year by 2005, from the half a
million it will sell this year, the paper reported.

Astra, whose cars include assembled Toyota Motor, Isuzu
Motors Ltd. and Daihatsu Motor Co. vehicles, warned
yesterday it expects sales growth to slow. (Bloomberg 13-
Dec-2000)

PT GRIA WIJAYA PRESTIGE: GWP threatens to sue IBRA
--------------------------------------------------
The management of PT Gria Wijaya Prestige (GWP), owner and
manager of Kuta Paradiso Hotel (KPH), has threatened to sue
IBRA over losses it incurred and for damaging its
reputation following IBRA 's official spreading of
misleading information about confiscation of the hotel at
the end of last November.

President Director of GWP Harijanto Karjadi said if by Dec.
26 IBRA doesn't revoke or withdraw the confiscation
statement, the company will sue IBRA.  "To us this is like
an act of robbery. Issuing a confiscation statement by
ignoring an existing legal process. The case is still being
processed in the Supreme Court," he said after meeting with
the Golkar Faction at the parliament yesterday.

Harijanto and company executives including Executive
Director Jimmy Hermawan and General Manager Ray Suryawijaya
yesterday reported the case to Ferry Mursyidan Baldan
(Deputy Chairman of House Commission II/on Law and Human
Rights Affair) and Akil Mochtar (Second Deputy of
Commission II).

"Our purpose to come to the parliament is to seek legal
certainty," said Harijanto. "We have asked the parliament
to discuss the case in accordance with the existing law."

He added that Kuta Paradiso Hotel is not included under the
company's program with IBRA's AMU, so IBRA cannot
categorize it as being cooperative or noncooperative.
GWP, he added, has completed all its debt obligations along
with the interest rates. That can be checked, he noted, in
the account report as of Oct. 3 by PT Bank Danamon
Indonesia, Semanggi branch Jakarta (ex Bank PDFCI).

According to Harijanto, IBRA is not entitled on any ground,
including government regulation No. 17/1999, to intervene
on an ongoing case.


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

KANSAI INT'L AIRPORT: No money coming, ministry says
----------------------------------------------------
The Finance Ministry will reject the Transport Ministry's
request for a 2 billion yen budget allocation for fiscal
2001 to help revamp the management of the loss-making
Kansai International Airport, according to government
sources.

The ministry had been lobbying for subsidies to Kansai
International Airport Co. to enable the ailing airport
operator to reduce landing fees and improve the airport's
international competitiveness. Extremely high landing fees
have long been blamed for being blocks to attracting
foreign carriers, resulting in a low number of flights.

The Finance Ministry was opposed to providing public funds
to the firm, instead believing the firm should carry out
drastic restructuring and trimming of management before
requesting government aid, the sources said. KIAC carries a
heavy debt load, and has accumulated losses of more than
150 billion yen. The company recorded pretax losses of 23.7
billion yen in 1999, its fifth consecutive loss-making
year. Nonetheless, KIAC is proceeding with second-phase
construction of a second runaway at a cost of 1.5 trillion
yen.

TIANJIN INT'L TRUST: Close to defaulting on Samurai bond
--------------------------------------------------------
Speculation is mounting that Tianjin International Trust
and Investment Corp. is on the verge of defaulting on a
12.5 billion yen Samurai bond issue held by Japanese
institutional and individual investors. An interest payment
deadline occurred Wednesday, but Fuji Bank, representative
trustee bank for the issue, had not received any payment as
of Tuesday. The issuance contract grants a two-week grace
period, and Tianjin ITIC has told Japanese brokerage firms
and banks that it is still raising money for the payment.


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

CHEJU BANK: To merge with Shinhan soon
--------------------------------------
Shinhan Bank, one of the nation's strongest banks, is
expected to agree to merge with troubled Cheju Bank soon, a
senior government official said yesterday.

"Shinhan and Cheju have informed the Financial Supervisory
Commission that both sides have agreed on a merger and are
likely to sign a memorandum of understanding as soon as
possible," a high-ranking FSC official said.

The government will provide maximum financial support if
Shinhan and Cheju voluntarily merge with each other, the
official said, adding that the FSC policy is not to force
healthy Seoul-based banks to merge with distressed regional
banks.  Last week, Shinhan President Lee In-ho said that
the bank would consider merging with Cheju if the
government cleans it up.

Meanwhile, FSC Chairman Lee Keun-young said yesterday that
a scenario for the restructuring of the troubled banking
sector, including mergers among strong banks, will
materialize within this week.  The top financial regulator
further said that affected banks, not the government, will
announce mergers or a consolidation under a government-run
financial holding company. (Korea Herald 13-Dec-2000)

HANBO IRON & STEEL: Strategic alliance, new bids sought
-------------------------------------------------------
Hanbo Iron & Steel and Hwanyoung Steel, both under a
workout program, have concluded an agreement on a strategic
alliance which will affect their overall operations, it was
announced yesterday.

Hanbo officials said that the agreement calls for the
companies to join forces in all business areas deemed
necessary for cooperation such as purchasing, production,
and marketing, as well as the supply of insufficient
materials, personnel support and joint use of computer
systems.

Under the agreement, the two companies will hold regular
meetings of related business divisions to set up concrete
plans on how to adjust their production volume, cut the
output of redundant items and purchase materials jointly.
Hanbo and Hwangyoung have sought for the alliance since
last May to save costs through the division of their sales
areas and joint purchase of materials.

The former is focusing on the production of small-diameter
iron bars while the latter is concentrating on thick ones.
Meanwhile, the creditors of Hanbo plans to seek a new buyer
following the collapse of talks with Nabors Consortium.
Industry sources welcomed the alliance, saying that the
alliance would infuse a new breath into the domestic
electric furnace industry suffering from excessive
facilities.

To keep their facilities rolling, electric furnace
companies have engaged in dumping sales in domestic and
overseas markets, which only aggravated insolvency problems
of the industry. (Korea Herald 13-Dec-2000)

KYONGGI HAEDONG MUT.SVGS.& FIN.CO.: FSS suspends ops
SEOUL HAEDONG MUT.SVGS.& FIN.CO.: FSS suspends ops
----------------------------------------------------
The Financial Supervisory Service has suspended the
operations of Seoul Haedong Mutual Savings and Finance Co.
and its affiliate, Kyonggi Haedong Mutual Savings and
Finance Co., for six months due to their liquidity
shortages.

The financial watchdog took action after the two thrift
institutions asked for a business suspension on Monday, as
they were unable to meet customer deposit withdrawals, it
said.  The move came three days after the FSS did the same
with the second largest industry player, Dong-A Mutual
Savings and Finance Co., following a liquidity crunch.

Dong-A's financial woes caused jitters over the safety of
their money and prompted them to take out their deposits
from Seoul Haedong Mutual Savings, ranked fifth in terms of
assets, the watchdog said.  With their operations halted,
the FSS suspended the duty of the two mutual savings
companies' top managers and dispatched legal custodians, an
FSS official said.

The two thrift institutions will be required to submit
their self-rescue plans to the FSS and legal custodians
will conduct due-diligence audits into them soon, he said.
Depending on the results of the due-diligence audits and
the feasibility of their self-help plans, the watchdog will
decide how to deal with the mutual savings and finance
firms, he added.  Deposits at the two thrifts will be
guaranteed fully by law.

As of Monday, Seoul Haedong Mutual Savings and Finance had
assets of 600.4 billion won, while deposits and loans
outstanding amounted to 513.9 billion won and 506.5 billion
won, respectively.  The assets of Kyonggi Haedong Mutual
Savings and Finance came to 132.6 billion won with its
deposits and loans outstanding reached 90.9 billion won and
82.2 billion won each.

The Korea Stock Exchange, meanwhile, suspended stock
trading of Seoul Haedong Mutual Savings earlier yesterday
due to its operations halt. Stock trading will resume
Thursday under the supervision of the exchange. Jitters
over the mutual savings sector are mounting despite the
government's steps on Monday to help ease their liquidity
shortages. (Korea Herald  13-Dec-2000)

REGENT MERCHANT BANK: Normalcy unlikely soon
--------------------------------------------
Regent Merchant Bank is not expected to resume normal
operations until Dec. 20 at the earliest because of
insufficient support from its parent company Korea Online
(KOL), an official of the Financial Supevisory Service said
yesterday.

The merchant bank plunged into a liquidity crisis last
month in the fallout from the loan scandal involving Jin
Seung-hyun, a venture entrepreneur who was arrested on
charges of manipulating stock prices.  Amid depositors'
rush to get their money out, the merchant bank ran short of
cash and suspended paying back deposits to corporate
clients.

KOL promised to provide liquidity to Regent Merchant by
selling off company stocks held by MCI Korea, a firm
controlled by Jin, to foreign investors and by putting up
100 billion won from its own coffers.  Regent raised some
liquidity by disposing of its assets and calling in loans.

However, KOL is hardly likely to receive 140 billion won by
selling off MCI Korea's stock holdings since it has lost
investor confidence because of the loan scandal. KOL's
share of the proceeds from the stock sales is 60 billion
won.  The merchant bank needs 250 billion won to fully
repay corporate depositors. (Korea Herald 14-Dec-2000)

SAMSUNG ELECTRO-MECHANICS:Debt plan angers Portuguese banks
-----------------------------------------------------------
Samsung Electro-Mechanics is in dispute with Portuguese
banks over rescheduling of the debt owed by its operation
there, news reports said.

According to the London-based Financial Times, Samsung
Electro-Mechanics (Semco), the electronic components unit
of Samsung Group, has threatened to let its Portuguese
plant employing 1,000 workers go into liquidation unless
the country's banks agree to write off 50 percent of debts
amounting to $66 million.

Samsung's proposals for rescheduling the debt, mainly the
result of foreign exchange operations by the former chief
financial officer of its Portuguese subsidiary, have deeply
angered Portuguese banks, said the paper report.  The
report then warned that Semco risks damaging its
credibility in Europe if it persists with the proposal,
with negative consequences for its credit ratings, customer
relations and investment incentive applications.

The Semco's Portuguese unit, which mainly assembles digital
satellite receivers for BskyB and satellite television,
incurred a debt of $43.2 million with nine Portuguese banks
as a result of euro-dollar forward operations this year.
Semco initially said the operations by its Portuguese chief
financial officer and board member, who has since left the
company, were unauthorized. However, it assumed responsi-
bility for the debt last week at a meeting with the banks.

"Portuguese banks are furious that Semco has threatened
them with the liquidation of the subsidiary as the only
alternative to its debt write-off plan," said the report.
"The group risks serious damage to its reputation if it
maintains its threat to allow the subsidiary to go into
liquidation without the parent company intervening to help
pay back the debt in full." (Korea Herald 14-Dec-2000)


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

UNIPHOENIX CORP: To sell assets for working capital
---------------------------------------------------
Uniphoenix Corporation Bhd is negotiating with several
parties to sell its assets for working capital, group
chairman Tan Sri Osman Aroff said today.

"We are pursuing various assets realisation initiatives
aimed at generating sufficient cash to sustain operations
during this difficult period," he told reporters after
UCB's annual general meeting. However, he declined to
specify the assets and parties involved.

The group registered a net loss of RM88.77 million for the
financial year ended June 30, 2000 on a turnover of RM60.66
million, compared with a net loss of RM69.68 million from
RM80.31 million the previous year.  Suspended UCB submitted
a restructuring scheme to the Securities Commission last
July in which it proposed capital reduction, asset
injection and debt to equity swap.

It had disposed of Halim Securities Sdn Bhd to JF Apex
Securities Bhd for RM100 million.  Stock broking and
financial services and investment holding contributed the
bulk of group pre-tax losses last year with RM33.23 million
and RM43.24 million respectively.

UCB chief executive officer and president, Datuk Jaafar Abu
Bakar said the group would concentrate on property
development until the restructuring is approved. Last year
its property division made a pre-tax loss of RM5.13
million.  Jaafar estimated UCB's 150ha land bank in Shah
Alam and Rawang was worth RM200 million to RM300 million
when developed.

He said the group would concentrate on low- and medium cost
housing due to higher uptake now. Early next year UCB would
launch 600 residential units being developed in Rawang and
260 units in Shah Alam. (The Edge Daily 13-Dec-2000)


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

MONDRAGON INT'L PHILS.: Creditor banks wanted to run Mimosa
-----------------------------------------------------------
Two creditor banks said Tuesday the state-run Clark
Development Corporation wants creditor banks of Mondragon
International Philippines Inc to control the operations of
its subsidiary Mimosa Leisure and Resorts Corporation.

In a statement to the stock exchange, Bank of the
Philippine Islands vice president Carlos Aquino said the
CDC takeover proposal is one of the options for Mondragon's
creditor banks, which the bank needs to study first.

Metrobank executive vice president Alfredo Javellana said
the CDC wanted all creditor banks to form a consortium that
will make an acceptable offer for the takeover of the
Mimosa estate. Last week, CDC said it will begin
negotiations with creditor banks of Mondragon Leisure and
Resorts Corp. to find a new operator for Mimosa.

CDC said it is considering to open up the operations of
Mimosa via public bidding since they have no plans of
allowing MLRC Chair Jose Antonio Gonzalez to run the
company.  Analysts said a new operator would help Mimosa
normalize its operations and provide the cash to service
Mondragon's debts. Mondragon continues to carry interest-
bearing debt of PHP6.5bn.

Based on its 1998 annual report long-term debt to major
creditors like Metropolitan Bank and Trust Co. at that time
already stood at P816 billion; United Coconut Planters Bank
at P496 million; Far East Bank, which has now merged with
the Bank of the Philippine Island, at P294 million and
Asian Bank, now merged with Global Bank, at P294 million.
Total long-term debt was at PHP2bn.

The move by CDC to look for investors follows a decision by
Pentacapital Investment Corp. to terminate its financial
advisory service with Mondragon International Phils. Inc
The company's shares have been suspended from trading since
August 4.

Earlier, PentaCapital said it could no longer continue with
the relationship since Gonzalez and his lawyer Atty.
Ernesto B. Francisco, Jr. made "untruthful statements" that
the firm acted on behalf of government-controlled Clark
Development Corporation, which seized Mimosa Leisure and
Resorts Corporation early this year, after Mondragon failed
to pay P325 million in unpaid rental dues.

NATIONAL STEEL CORP.: Glencore ready to invest up to $150M
----------------------------------------------------------
Swiss-based Glencore Far East Philippines AG is willing to
buy into National Steel Corp. (NSC) but has set an
investment cap of $150 million.

In an interview after a luncheon sponsored by the
Philippine Associated Smelting and Refining Corp. (PASAR)
for the investment mission led by the China Ministry of
Foreign Trade and Economic Cooperation (Moftec) yesterday,
Angel N. Veloso, executive vice-president at Glencore, said
the firm is limiting its investment to $150 million, citing
initial due diligence conducted on the steel company.

"Glencore is looking at it (investing in NSC) but whether
it would be done next month or next year, we have no idea
yet...We've done technical due diligence on the company and
we valued it at $150 million, we still have to do our legal
due diligence, and financial due diligence. Based on those
factors, we're only 35% complete (on the due diligence
process)," Mr. Veloso said.  "Our due diligence was based
on what they have. If we pay more than $150 million, it
will not meet our investment hurdle rate. If they will
accept, matutuloy. Pag hindi, tapos na kaagad (it will puch
through. If not, then that's the end of the deal)."

He added that the company is looking at partnering with a
local group to operate NSC. "We believe that we are an
international investment company, we shouldn't really be
involved in a local company. We have to find a good local
partner," he said. "We'll cross the bridge when we get
there."

Observers say Glencore may have a hard time scouting for a
local partner considering the huge investment requirement
in the steel company. "If we don't find a local partner,
we'll cross the bridge when we get there," Mr. Veloso said.

Aside from eyeing NSC, Glencore has tied up with PASAR to
bid for the Philippine Phosphate Fertilizer Corp. It,
however, lost out to the consortium led by businessman Jose
"Pepito" Alvarez. Despite NSC's heavy debts, Glencore is
exploring possibilities of tapping NSC's markets as its own
business lies in oil, metal and coal.

"We're looking at National Steel (product) for export," he
said. Creditors banks were earlier reported to be in
serious talks with the Swiss-firm for the infusion of over
$150 million to settle NSC's debts and over $200 million
more as working capital.

The NSC case has been marked as the biggest liquidation
piece in the country and will likely give prospective
investors a glimpse of how well creditors' rights are
protected under a distressed and mismanaged company.
The Philippine government still owns 12.5% of the
beleaguered firm.

In 1995, it sold its majority interest to Malaysian firm
Wing Tiek Holdings Berhad, which later sold the shares to
Hottick Investments Ltd. The steel firm has supended its
debt payments since December last year due to poor
revenues, blaming dumping practices of Russian steel
makers.

The Securities and Exchange Commission (SEC) earlier ruled
for the liquidation of the firm after a nine-month struggle
for the rehabilitation of what used to be the country's
biggest steel maker. The commission issued the order
following objections raised by creditor banks and
shareholders against a rehabilitation plan earlier proposed
by the SEC-appointed interim receivership committee (IRC).

NSC's assets were pegged at 29.27 billion Philippine pesos
($587.09 million at PhP49.856=$1) while its debts stood at
PhP16.5-billion ($330.95 million). "I think the liquidation
facilitates action because for a long time it has been one
rehab plan over another... the parties can't seem to agree.
There has been too much dilly-dallying and this
(liquidation) would make them do something about the
problem. The employees have been waiting for so long...
liquidation would give the employees a better chance. Now,
anyone who wants to buy (NSC) can buy it and be able to
operate the plant. This is what we hope will happen...that
anyone who wants to operate it, can...and the employees
will get their jobs back or at least they would be paid
what is owed them," SEC chairman Lilia R. Bautista
previously said.

Since the steel maker closed shop in November last year,
over 2,700 workers have been displaced and their claims
have reached PhP700 million ($14.04 million). (Business
World  13-Dec-2000)

URBAN BANK: S'holders approve rehab plan, director slate
--------------------------------------------------------
Stockholders representing 70 percent of the bank's total
outstanding stock attended the long-awaited annual general
meeting Tuesday and elected a temporary board of directors
and approved a rehabilitation plan.

Stockholders elected a board of directors comprised of DMCI
Holdings Inc. president Isidro A. Consunji; former San
Miguel Corp. president Francisco C. Eizmendi, Jr.; Juvencio
D. Dizon of Dizon Copper-Silver Mines; Dee Hua Gatchalian
of the Wellex Group; Benjamin de Leon, Ferdinand Lim, Urban
Bank treasurer Renato Claravall and corporate secretary
Noel A. Laman, who acted as chairman.

The rehabilitation plan is to be fully implemented over
three years, but will need the support of the stockholders,
Edgar R. Anabo Bancommerce assistant vice-president said.
During the four-hour meeting, 15 million shares favored the
rehabilitation plan with 25 shares opposed.


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

RATANA REAL ESTATE: Posts huge annual loss
------------------------------------------
Ratana Real Estate recorded a net loss of Bt1.85 billion
last financial year, up more than 400 percent from a net
loss of Bt427.4 million for the previous year. The
company's audited annual loss totaled Bt22.45 per share,
likewise up from Bt5.28 per share the prior year. Since
last being traded on Aug. 21, 1998 at Bt0.70 a share, the
company's stock was suspended from trading.

SINOTHAI ENGIN.& CONSTR.: Debt plan details
-------------------------------------------
Under Sinothai Engineering and Construction's debt
restructuring plan, dividends will not be paid for five
years to convince creditors it can meet its remaining
obligations. Additionally, the company plans to finance new
construction work on a project-finance basis -- not by
using working capital.

Under the plan, 75 creditors will restructure Bt5.07-
billion in loans, and its subsidiary SinoThai Construction
Service Co will cease operations in order to save costs and
conserve resources. The affiliate will remain in business,
however, to collect payments from some pending contracts
with the Bangkok Metropolitan Authority.

The debt-rehab plan was approved in August and is to be
fully implemented next April. It calls for the company to
raise new capital through the issue of 55 million new
shares -- five million shares will be offered for sale to
majority shareholders at Bt20 each, while creditors will be
offered 50 million shares. They also will be able to
convert Bt3.5-billion-worth of loans into shares for Bt70 a
share.

Also included in the restructuring is the extension of the
debt-repayment period to December 30, 2006, cash repayment
and waiver of outstanding interest.
THAI PETROCHEM.INDUS.: Asks Sup.Ct. to change judges
----------------------------------------------------
Thai Petrochemical Industry Plc's chief executive Prachai
Leophairatana has sought the help of the Supreme Court in
changing the team of judges in the Central Bankruptcy Court
hearing the rehabilitation case. Prachai is alleging that
the CBC judges may be affected by an alleged conflict of
interest involving the court and one of TPI's major
creditors, Bangkok Bank Plc. The Central Bankruptcy court
has leased office space from Bangkok Insurance, a
subsidiary of Bangkok Bank.

Consequently, a CBC decision approving Thai Petrochemical's
debt restructuring plan has been further delayed.  About
150 creditors already endorsed the US$3.8 billion (S$6.7
billion) debt restructuring plan last month, but Prachai
has raised several questions, leading to the case being
brought before the Supreme Court.
The rehab plan proposes a debt-to-equity swap under which
creditors would receive a 75 percent stake in the company
in return for waiving US$756 million in debt. Payments on
the debt balance would be made over four years, with some
assets being sold. Court-appointed, Australian consulting
firm Effective Planner Co., preparer of the debt plan,
would manage TPI during its four-year rehabilitation
period.


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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