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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

           Monday, November 4, 2002, Vol. 5, No. 218

                         Headlines

A U S T R A L I A

NETWEALTH INVESTMENTS: ASIC Obtains Compensation for Investors


C H I N A   &   H O N G  K O N G

EURO-ASIA AGRICULTURAL: Creditor Demands Payment on 60M Loan
LUCKY FORTUNE: HK High Court to Hear Wind Up Petition Nov. 20
LUCKY LAM: Wind Up Petition Scheduled for Hearing November 20


I N D O N E S I A

BANK NEGARA: $75 Million Bond Issue Roadshow Begins  


J A P A N

HITACHI LTD.: Cuts Full-year Forecast Despite First Half Boon
ISHIKAWA BANK: Local Rivals Divide Branches Among Themselves
MIZUHO HOLDINGS: Unit to Sell One Trillion Yen in Bad Loans
SKYMARK AIRLINES: Offer New Shares to U.S. Investment Firm


K O R E A

CHOHUNG BANK: Urges Government to Sell Only 20% this Year
HYUNDAI MERCHANT: Gets US$950 Million Syndicated Loan


M A L A Y S I A

ASSOCIATED KAOLIN: Proposes Changes in Debt Restructuring Plan
IJM CORPORATION: Will Ask Securities Agency to Waive Trust Deed


P H I L I P P I N E S

MANILA ELECTRIC: S&P Lowers Grade to BB, Negative Outlook
NATIONAL POWER: Designated as Borrower for WESM Project Loan
NON-LIFE INSURERS: Six Told to Halt Operations

S I N G A P O R E

GOLDTRON LIMITED: Debt-restructuring Talks Now in Homestretch


T H A I L A N D

KRUNG THAI: December Listing via IPO Set, 3B Shares at Stake
THAI COPPER: 4.5B-baht Capital Cut Caps Debt-restructuring
THAI MILITARY: President's Resignation Unexpectedly Early
TPI POLENE: Creditors to Move for Debt Administrator's Ouster

     -  -  -  -  -  -  -  -

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


NETWEALTH INVESTMENTS: ASIC Obtains Compensation for Investors
--------------------------------------------------------------
The Australian Securities and Investments Commission (ASIC) has
obtained compensation for investors who may have been misled by
the use of simulated returns in a prospectus issued by Netwealth
Investments Limited (Netwealth).

ASIC was concerned that the use of simulated past performance
figures may have given investors the impression that the returns
in the Netwealth prospectus, dated 26 February 2001, were the
returns that the Netwealth Investment Trusts would have earned
had they been operating for the five years to 30 June 2000. In
fact, the Trusts only commenced accepting funds in August 2001.

ASIC raised its concerns with Netwealth, which has cooperated
with ASIC to resolve these issues.

Whilst not admitting that the Netwealth prospectus contained
misleading or deceptive statements through the use of simulated
returns, Netwealth has agreed to compensate all investors who
invested in the Trusts prior to the issue of the supplementary
prospectus, dated 4 March 2002.

The compensation offer makes up any shortfall incurred by
investors, plus an additional five per cent interest from the
date of investment to the date of redemption. This only affects
a small number of investors, who will be contacted by Netwealth
with the full details of the compensation offer.

"Investors who have been misled by the inappropriate use of past
performance figures, including simulated returns, have the right
to be compensated for any losses they may have incurred as a
result of relying on such information," said ASIC's Executive
Director of Consumer Protection, Mr Peter Kell.


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


EURO-ASIA AGRICULTURAL: Creditor Demands Payment on 60M Loan
------------------------------------------------------------
A creditor bank of Euro-Asia Agricultural (Holdings) demanded
repayment on debts that fell due last week, forcing the scandal-
hit firm to teeter on the edge of collapse, South China Morning
Post said.

Euro-Asia, whose chairman Yang Bin has been detained by mainland
authorities, remains unable to access the bank accounts of its
main subsidiary in Shenyang and has been deserted by nearly all
staff in its Hong Kong office.

The paper says newly appointed acting chairman Jacobus
Lekkerkerk has resigned, along with auditor
PricewaterhouseCoopers.  A financial adviser appointed on
October 18 to review the company's financial position resigned a
week later after deciding Euro-Asia would be unable to pay its
fee.

In a statement faxed to newspapers and posted on the exchange's
Web site Thursday last week, Euro-Asia said one of two creditor
banks in Hong Kong owed HK$60 million "has exercised its right
late today and served a demand call to recover its outstanding
indebtedness within two days on or before November 1, 2002."

Euro-Asia owes HK$30M each to Hamburgische Landesbank's Hong
Kong branch and Chiyu Banking Corp. part of the Bank of China
group, the paper said.


LUCKY FORTUNE: HK High Court to Hear Wind Up Petition Nov. 20
-------------------------------------------------------------
A petition seeking the wind up of Lucky Fortune Restaurant
Company Limited is scheduled for hearing before the High Court
of Hong Kong on November 20, 2002 at 9:30 in the morning.

Li Hoi Chau of Flat 2, 14/F., Yung Wa House, Yung Shing Court,
Fanling, New Territories, Hong Kong brought the petition on
September 16, 2002.  Tam Lee Po Lin, Nina represents the
petitioner.

Creditors and other interested parties may attend the hearing.  
They only need to notify in writing Tam Lee Po Lin, Nina, which
holds office at the 27th Floor, Queensway Government Offices, 66
Queensway, Hong Kong.


LUCKY LAM: Wind Up Petition Scheduled for Hearing November 20
-------------------------------------------------------------
The High Court of Hong Kong will hear on November 20, 2002 at
9:30 in the morning the petition seeking the wind up of Lucky
Lam International Limited.

Chan Kwok Shing of Flat A, 3/F., Yue King Building, 293 Shanghai
Street, Yaumatei, Kowloon, Hong Kong brought the petition on
September 19, 2002.  Tam Lee Po Lin, Nina represents the
petitioner.

Creditors and other interested parties may attend the hearing.  
They only need to notify in writing Tam Lee Po Lin, Nina, which
holds office at the 27th Floor, Queensway Government Offices, 66
Queensway, Hong Kong.




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


BANK NEGARA: $75 Million Bond Issue Roadshow Begins  
---------------------------------------------------
Bank Negara Indonesia kicked off on Thursday the roadshow for
its $75 million lower tier 2-transaction in Hong Kong, the
IndoExchange said late last week.

JP Morgan, which is lead-managing the bond issue, was expected
to move to Singapore by weekend.  Pricing is scheduled for the
middle of this week, the news agency said.

Key to the pricing of the B3/B- rated deal will be whether it
should come at a premium to Bank Mandiri, which commands the
same rating and completed a $125 million 10 non call five issue
in late July via UBS Warburg, the report said.

Priced at 99.147%, Mandiri's deal has a coupon of 10.625% and
was priced to yield 10.85%, equating to 747bp over Treasuries,
or 682bp over Libor.  Yesterday traders reported the deal bid at
708bp over Treasuries, to yield 9.91%, the news agency said.

IndoExchange says pricing may be affected by the adoption of a
different strategy.  Whereas Mandiri was determined to widen its
investor base and targeted both Europe and the US, investors say
that BNI is concentrating on Asia, where it knows it can achieve
tighter pricing.  

Observers also say Mandiri was rather unlucky, in that its deal
caught the year's first wave of volatile credit markets and a
growing risk aversion, which temporarily took the shine off
Asian high yield.



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


HITACHI LTD.: Cuts Full-year Forecast Despite First Half Boon
-------------------------------------------------------------
Electronics giant Hitachi Ltd. reversed last year's first half
loss, posting operating profits of 61.69 billion yen for the six
months to September, says Dow Jones Newswires.

During the same period last year, the company had losses of
42.11 billion yen.  Latest figures also show group net profit of
12.85 billion yen, beating earlier estimates of only a
breakeven.  Group sales totaled 3.92 trillion yen, the report
said.

But despite the big improvement, Hitachi followed its peers in
cutting full-year operating profit estimates to 150 billion yen
from 200 billion yen.

"The tough business environment for our power and industrial
systems won't change in the second half of this year," said
Hitachi's chief financial officer Yoshiki Yagi.  "And we aren't
expecting things to brighten up later this year for our
semiconductor business either."

Last week, NEC Corp., Toshiba Corp., Mitsubishi Electric Corp.
and Fujitsu Ltd. also reported improved earnings for the six
months thanks largely to their restructuring measures, but all
warned that continued weakness in the global economy would hurt
their earnings later this year.


ISHIKAWA BANK: Local Rivals Divide Branches Among Themselves
------------------------------------------------------------
Five local lenders will take over the operations of failed
Ishikawa Bank, says Japan Today.

Under a "basic agreement," 42 of Ishikawa's 65 branches will be
taken over by Hokuriku, sources told the paper.  Four branches
will be taken over by Hokkoku, two by the First Bank of Toyama,
11 by Kanazawa Shinkin Bank and six by Noto Shinkin Bank.

Ishikawa Bank filed for insolvency proceedings last December
with the Financial Services Agency (FSA), which immediately
appointed three administrators to take charge of the bank.

Earlier this year, U.S. investment fund Metropolitan Mortgage &
Securities Co. expressed interest in taking over the failed
bank.


MIZUHO HOLDINGS: Unit to Sell One Trillion Yen in Bad Loans
-----------------------------------------------------------
Expecting banking regulator Heizo Takenaka to be tough on bad
loans, Mizuho Corporate Bank has decided to speed up the
disposal of its own bad loans, says Reuters.

The bank, a unit of Mizuho Holdings Inc., plans to dispose of
one trillion yen worth of loans to troubled Japanese borrowers
in the fiscal year from next April.  The bank had originally
planned to dispose of the loans within two to three years time.

According to the report, the one trillion yen represent bad
loans handed to some 150 firms, which had a high possibility of
going bankrupt or had already failed.


SKYMARK AIRLINES: Offer New Shares to U.S. Investment Firm
----------------------------------------------------------
Skymark Airlines, which abandoned last week a 3 billion-yen fund
raising through a third-party allocation of new shares, is
expected to enter into negotiations with a New York-based
investment advisory firm this week.

According to Japan Today, the company is keen on raising funds
through this method.  The Singapore branch of Commerzbank AG was
originally the recipient of the new shares, but the airline
cancelled the transaction after the bank failed to meet a
deadline for remittance.

Last month, Troubled Company Reporter-Asia Pacific said the
airline had net losses of 1.65 billion yen in the three months
to July due to disappointing traffic during the soccer World Cup
and a large drop in cargo operations.  Although revenue for the
quarter grew 7.3 percent to 10.1 billion yen, operational
profits declined by more than 500 million yen to 1.58 billion
yen.  Playing the biggest spoiler was the cargo operations,
which fell 51.1 percent to 95 million yen from a year ago.

Citing Wright Investor's Service, TCR-AP bared that at the end
of 2001, Skymark Airlines Co., Ltd. had negative working
capital, as current liabilities were 4.17 billion yen while
total current assets were only 1.47 billion yen.



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


CHOHUNG BANK: Urges Government to Sell Only 20% this Year
---------------------------------------------------------
Soon-to-be-privatized Chohung Bank urged the government recently
to limit the sale of its stake to just 20% this year, The Korea
Herald said last week.

In an interview with The Dong-a Ilbo, CEO Hong Serck-joo said
the best solution is to sell about 20 percent to a foreign
investor this year, and to sell the remaining stake next year.

Mr. Hong was quoted as saying that he could not understand why
the government is seeking a block sale in the face of moribund
local stock markets.   The Korean government, which owns 80
percent of the lender, has selected four bidders to sell a stake
in Chohung, and allowed them to conduct a due diligence on the
lender.

The Shinhan Financial Group-led consortium wants to buy at least
51 percent of Chohung and other bidders were also reported as
wanting to buy a 10-20 percent stake, the paper said.


HYUNDAI MERCHANT: Gets US$950 Million Syndicated Loan
-----------------------------------------------------
RoRo Korea, the joint venture formed between Hyundai Motor group
in Korea and Europe's Wilhelmsen-Wallenius Lines (WWL)
consortium, has been handed a US$950 million loan from a
syndicate of 12 Korean banks, including state-run Korea
Development Bank (KDB) and Citibank, The Chosun Ilbo said late
last week.

RoRo Korea operates Hyundai Merchant Marine (HMM)'s ocean-going
automobile transportation operation.  On August 9, the shipping
firm and the consortium signed a US$1.5 billion deal, taking
over HMM's assets, including 72 pure auto-shipping vessels, as
well as business infrastructures and rights.

KDB said Citibank would cover US$300 million of the loan, and
that 11 Korean financial organizations, including KDB, Korea
Exchange, and National Agricultural Cooperative Federation, are
to share the remaining US$650 million. The joint venture is
expected to use the loan for the payment to HMM, KDB said.

HMM recently figured prominently in the news for not including a
400 billion won loan in its 2000 annual report.  HMM is
suspected of having channeled the loan to North Korea
before the first inter-Korean summit in June 2000.  Korea
Development Bank, which lent the money, is also suspected of
coughing up the loan under pressure the government.



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


ASSOCIATED KAOLIN: Proposes Changes in Debt Restructuring Plan
--------------------------------------------------------------
Pursuant to Practice Note No. 4/2001 in relation to paragraph
8.14 of the Revamped Listing Requirements, Associated Kaolin
Industries Berhad wishes to announce the following:

Further to our announcement dated 1 October 2002, the Promoters
have indicated to the Special Administrators (SAs) of AKI that
they are unable to procure underwriting for the Proposed Rights
Issue and procure investors for the Special Bumiputera Issue.
The Promoters have proposed certain modifications to AKI's
Proposed Corporate and Debt Restructuring Scheme. The SAs are
currently in discussion with the Promoters on the proposed
modifications and will make the necessary announcement on the
outcome in due course.


IJM CORPORATION: Will Ask Securities Agency to Waive Trust Deed
---------------------------------------------------------------
On June 28, 2002, Public Merchant Bank Berhad (PMBB) announced
on behalf of IJM Corporation Berhad and RHTB, the Proposed
Corporate Exercise involving IJM Plantations Sdn Bhd (IJMP), a
wholly-owned subsidiary company of IJM, which is to be listed on
the Main Board of the Kuala Lumpur Stock Exchange in place of
RHTB.

PMBB, on behalf of IJM and RHTB, is pleased to announce that the
Securities Commission (SC) had, vide its letter dated 28 October
2002 which was received on 30 October 2002, approved the
Proposed Corporate Exercise.

The SC's approval for the Proposed Corporate Exercise is subject
to the following conditions being fulfilled:

(i) IJMP is to be converted into a public limited company prior
to the implementation of the Proposed Corporate Exercise;

(ii) In line with the SC's Policies and Guidelines on
Issue/Offer of Securities (Guidelines) on "initial public
offering," a moratorium is to be placed on IJM's shareholdings
in IJMP up to 45% of the enlarged issued and paid-up capital of
IJMP. In this regard, IJM is not allowed to sell, transfer or
assign its shareholdings under moratorium for at least one (1)
year from the date of the listing of the shares. Thereafter, IJM
is allowed to sell, transfer or assign only up to a maximum of
one-third (1/3) of its shareholdings under moratorium per annum
(on a straight line basis).

However IJM may adopt any amendments to the SC's Guidelines
regarding the above restriction imposed on the sales when it is
announced later in conjunction with the implementation of phase
three of the disclosure-based regulations;

(iii) IJMP is required to fully comply with the public
shareholding spread, whereby at least 25% of IJMP's issued and
paid-up share capital at the time of listing shall be in the
hands of public shareholders;

(iv) RHTB is required to appoint an experienced independent
audit firm (not being the existing auditors of the RHTB group)
to carry out an investigative audit within a period of two
months from the date of the SC letter. The purpose of the
investigative audit is to investigate the past losses incurred
by the RHTB group. RHTB is required to take the necessary steps
to recover the losses incurred by the RHTB group. Based on the
findings of the investigative audit, RHTB is required to make
reports to the relevant authorities if it is established that
there have been breaches of law, regulations, guidelines and/or
RHTB's Memorandum and Articles of Association that are related
to the Board of Directors of RHTB and/or any other parties that
have caused the said losses of the RHTB group.

The investigative audit must be completed within a period of six
(6) months from the date of the appointment of the independent
audit firm and two copies of the investigative audit report must
be submitted to the SC upon completion of the investigative
audit;

(v) RHTB is required to issue an Information Circular to the
stockholders of RHTB and to disclose the implications of the
Proposed Corporate Exercise on the stockholders of RHTB;

(vi) PMBB/IJMP is required to obtain the SC's approval with
regards to any amendments to the terms of the 5 year 5%
redeemable convertible unsecured loan stocks ("RCULS");

(vii) Before the issuance of the RCULS, PMBB/IJMP is required to
furnish the following:

(a) the FMF/JPB (Facility Maintenance File) form to the SC and
Bank Negara Malaysia; and
(b) the trust deed which has been duly executed to the SC; and

(viii) Compliance with all the requirements relating to the
Proposed Corporate Exercise, as stated in the SC's Guidelines on
the Issue/Offer of Securities and Private Debt Securities.

PMBB and RHTB/IJM are required to provide written confirmations
to the SC on the compliance with all the above terms and
conditions upon completion of the Proposed Corporate Exercise.

In view of the fact that the RCULS are to be issued to a single
holder (i.e. IJM), pursuant to Schedule 4 of the Securities
Commission Act, 1993 in relation to the issuance of debentures,
a trust deed will not be required to be furnished to the SC. As
such, IJM/IJMP will be writing to the SC to confirm that the
execution of a trust deed shall not be required.

This announcement is dated November 1, 2002.



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


MANILA ELECTRIC: S&P Lowers Grade to BB, Negative Outlook
---------------------------------------------------------
Standard & Poor's Ratings Services downgraded to double-'B' from
double-'B'-plus and revised to negative the outlook of
Philippine power distributor Manila Electric Co. (Meralco) last
week.

"The downgrade reflects growing concerns regarding the company's
weak financial position and short-term debt maturity profile.
The negative outlook on the rating on Meralco suggests that a
further downgrade of the rating on the company may be warranted
if its financial position continues to deteriorate," S&P said in
a press statement.

S&P notes that Meralco's financial profile weakened in 2001 as a
result of the lack of a base rate tariff increase, slow growth
in the level of demand, excess capacity in the market, a less
than 100% recovery under automatic adjustment mechanisms, and
the depreciation of the Philippine peso.

"There is concern that operating cash flows will not be
sufficient to cover capital expenditure and maturing debt
obligations over the next few years. The company's ability to
refinance existing debt obligations in 2003 and maintain strong
market access is essential," said Mary Ellen Olson, director at
Standard & Poor's.  About 90% of Meralco's debt obligations are
financed in U.S. dollars.

Standard & Poor's also noted the liquidity pressures facing
Meralco's parent company, Benpres Holdings Corp., which has a
28% effective interest in Meralco.  Benpres, which is majority
owned by the Lopez family, is experiencing a short-term
liquidity crunch and restructuring its liabilities.

"We view Meralco as part of the Lopez family group and are
concerned that Meralco's access to capital may, at some point,
be restricted due to financial difficulties at Benpres and its
affiliated companies," said Ms. Olson.

Standard & Poor's said it is watching the outcome of a decision
by the Energy Regulatory Commission (ERC) regarding Meralco's
April 2000 request for a 30-centavo base-rate tariff increase.
The ERC is expected to rule before the end of 2002.

"From a credit rating perspective, a rate increase is expected
to help revitalize Meralco's financial performance and improve
bondholder protection.  The government of President Gloria
Macapagal-Arroyo is committed to lowering electricity rates for
consumers, however, and Meralco's ability to achieve base-rate
tariff increases remains uncertain," S&P notes.

For more information, contact Mary Ellen Olson, Hong Kong
(852) 2533-3539; Raymond Woo, Hong Kong (852) 2533-3526


NATIONAL POWER: Designated as Borrower for WESM Project Loan
------------------------------------------------------------
State-owned power producer National Power Corporation has been
designated as the borrower for a US$40 billion Asian Development
Bank loan to finance the implementation of the government's
Wholesale Electricity Spot Market (WESM) project.

Acting Napocor President Roland S. Quilala told Business World
last week that technical discussions for the loan began October
25 and it was decided that the firm will act as borrower.  

The $40 million loan is only half of the loan package being
sought for co-financing by the ADB and the Japan Bank for
International Cooperation (JBIC), the paper said.  The remaining
half will be allocated to finance the National Transmission
Co.'s (Transco) Luzon transmission upgrading project and the
Mindanao substation upgrading project.

An official privy to the negotiations told Business World that
government and ADB representatives also confirmed the appraisals
done on the three projects, including the final WESM, the Luzon
transmission upgrading project and the Mindanao substation
upgrading project.

The contract packages and the mode of procurement to be used for
the WESM and the two transmission upgrading projects have also
been finalized, the official told the paper.

"Both panels have confirmed the appraisal of the projects under
the loan. You can recall that there was a pre-appraisal mission
prior to the commencement of the technical discussions. Reports
from these pre-appraisal missions were just confirmed by both
panels," the unidentified official told Business World in an
interview.

The source said ADB continued to express a "positive response"
on the government's loan proposal, which strongly indicates its
possible approval within the next month as committed by the
Bank.

"The response we're getting from them (ADB) is very positive so
that we are optimistic that we would have a loan approval
hopefully by next month. We are still right in schedule," the
source told the paper.

The WESM is identified as a priority project of the
administration and forms part of the government's ten-point
power program, which aims to lower electricity rates in the
country.  A 40-centavo per kilowatt-hour reduction in
electricity rates is expected to reach consumers once the WESM
becomes operational.

Transco has said the final WESM may commence trial operations in
the third quarter of next year or about July or August. Regular
operations are expected to start after three months, or by about
October or November, the paper said.


NON-LIFE INSURERS: Six Told to Halt Operations
----------------------------------------------
Six non-life insurance firms were ordered to cease and desist
operations last week, after the Insurance Commission found out
they had failed to comply with the required minimum paid-up
capital.

According to Business World, the six are Times Surety &
Insurance Co., Inc.; Far Eastern Surety & Insurance Co., Inc.;
Luzon Insurance & Surety Co., Inc.; First Quezon City Insurance
Co.; Investors Assurance Corp.; and South Sea Surety & Insurance
Co., Inc.

"They cannot accept new business from the time they receive the
cease-and-desist order.  But they have to service the policies
issued before the date," IC chief Eduardo T. Malinis told
Business World.  

The paper said of the six firms, Times Surety & Insurance Co.,
Inc. and Far Eastern Surety & Insurance Co., Inc. decided not to
beef up its capital to meet the required minimum paid-up capital
of PHP50 million ($939,461 at PhP53.222=$1) by yearend.   With a
cease-and-desist order, the six insurance companies are
prohibited from selling new policies or taking new risks of any
kind.

In an order issued December 2001, Finance Secretary Jose Isidro
N. Camacho directed all life and non-life companies to maintain
a minimum paid-up capital of PHP50 million by June 30 this year
before their operational licenses can be renewed, the report
said.  In July, however, the finance department moved the
deadline to end-of-December after a number of non-complying non-
life firms asked for an extension, provided they increase their
paid-up capital to at least PHP30 million by September 30.

"Noncompliance with the foregoing conditions is sufficient
ground for the revocation of the company's certificate of
authority," the finance department said in July.  At that time,
16 non-life insurers had paid-up capital below the required
level.

"The circular has been very clear. There is going to be a
revocation of certificate of authority. They (non-complying
insurers) will be stopped from transacting insurance business,"
Mr. Malinis told Business World.



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


GOLDTRON LIMITED: Debt-restructuring Talks Now in Homestretch
-------------------------------------------------------------
Goldtron Limited, a one-time stock market favorite, is now in
the final stage of negotiation with the group's bankers to
restructure about $42.2 million of short-term borrowings into 5-
year term loans, The Business Times said Friday.

Goldtron directors are confident the negotiation will be
successful.  They believe there has been sufficient financial
information disseminated to the market to avoid the
establishment of a false market in Goldtron shares, the paper
said.



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


KRUNG THAI: December Listing via IPO Set, 3B Shares at Stake
------------------------------------------------------------
Krung Thai Bank aims to start trading on the Stock Exchange of
Thailand by December 23, says the Bangkok Post, citing bank
President Viroj Nualkhair.

The bank, which plans a three-billion-share offering, says pre-
marketing campaign for the public offering will begin November
11 or after the United Nations had voted on Iraqi compliance
with disarmament resolutions.

The Middle East crisis remains the only roadblock to a
successful offering, says Mr. Viroj, as an escalation of the
situation would certainly affect investor confidence.

Mr. Viroj told the Bangkok Post that the bank would gather
information about investor demand and market sentiment until
mid-November, and the Financial Institutions Development Fund
would make the final decision on the offering by November 22.

"If the FIDF gives the go-ahead, we will begin roadshows
immediately," he told the paper in an interview recently.

Pricing for the share offering was planned for December 10, with
trading on the stock exchange to begin December 23, the report
said.

The FIDF currently holds an 89% stake in the bank, with total
state ownership around 94%. Shareholders last month approved a
restructuring plan reducing paid-up capital to 57.6 billion baht
and cutting share par value to 5.15 baht from 10 baht. Excess
reserves and funds gained from the reduction will be used to
clear accumulated losses of 76 billion baht, with 10.8 billion
warrants held by the FIDF repurchased for 6.58 billion.

The share offering will reduce state holdings in Krung Thai to
around 55%.  No details on the offering have been set, but under
the bank's articles of association, foreign shareholding is
limited to 25%, the paper said.

Mr. Viroj says it would likely take another three to five years
before Krung Thai would be fully privatized with state ownership
reduced to a minority stake.


THAI COPPER: 4.5B-baht Capital Cut Caps Debt-restructuring
----------------------------------------------------------
Thai Copper Industries has written off some 4.5 billion baht in
equity to complete its debt restructuring, says the Bangkok
Post.

In the process, however, the company's principal debts have been
cut down to 5.22 billion baht from 11.83 billion baht, the paper
said, citing Prasert Uekamolsukho, vice-president for business
restructuring of Thai Asset Management Corporation (TAMC).  TAMC
and the Industrial Finance Corporation of Thailand are the
company's two main creditors.

Of the remaining debt, 2.456 billion baht will be paid over a
10-year period, with a grace period of three years, and 2.9
billion baht will be converted into equity, the paper said.

A group of strategic investors, including Norwegian firm
Kvaerner Group, will inject 3.369 billion baht in new capital
into the firm.  Long-term loans and working capital facilities
worth 7.3 billion baht will also be secured, the paper added.

Thai Copper needs to draw in $250 million more in capital, or
around 10.764 billion baht, to complete its copper smelter and
refinery in eastern Rayong.

Company President Prayudh Mahagitsiri, which currently owns 60%
of the firm, said the new funds would be raised within 60 days.
If sufficient funds from strategic investors were not available,
he would bring in new investors himself.

Executives of Kvaerner, which is the sole contractor of the
Rayong plant, said construction of the plant, with the annual
capacity of 165,000 tonnes, is expected to take 15 months.  Upon
completion, the plant would be the only producer of pure copper
cathode in the country, the paper said.


THAI MILITARY: President's Resignation Unexpectedly Early
---------------------------------------------------------
A conflict with the board of directors is believed to have
hastened the resignation of Thai Military Bank President Somchai
Sakulsurarat, the Bangkok Post said late last week.

Sources told the paper that Mr. Somchai decided to resign due to
a dispute over lines of authority in approving bank decisions
involving financial issues, including debt reductions in
restructuring cases or asset sales.

Mr. Somchai played down any disagreements with the board. He
said he had decided to step down after the bank recently
appointed a search committee to find his successor ahead of the
scheduled expiry of his term in June 2003.

"I felt that once the board established the search committee, it
was in the best interests to step down now and give the
committee a full opportunity to find a successor," he told the
paper.

Siri Ganjarerndee, a TMB director and former assistant governor
of the Bank of Thailand, will serve as acting president in the
interim, the paper said.

Mr. Somchai, 54 years old, was named president of Thai Military
Bank in 2000, becoming the first Thai to have served as the head
of three local banks, following stints at Bangkok Metropolitan
Bank and Bank of Ayudhya.

The TMB search committee will be chaired by Gen. Pang Malakul,
and also include Mr. Siri, Tawatchai Yongkittikul and Puntip
Surathi.


TPI POLENE: Creditors to Move for Debt Administrator's Ouster
-------------------------------------------------------------
Creditors will seek the ouster of Prachai Leopairatana, the debt
administrator of TPI Polene Plc, by filing a petition with
Central Bankruptcy Court this week, The Nation says.

Citing an unidentified member of the steering committee for
creditors, the paper said the group will file the petition
before the court hears on November 7 the case filed by Mr.
Prachai to keep himself in the administrative position.

The source said creditors are unanimous in its their decision to
remove TPI Polene Planner Co Ltd, which is operated by Prachai
and Orapin Leopairatana, as the company's debt-administration
planner as they could not operate the business following its
debt restructuring.   The source said the main reason for this
decision was because Mr. Prachai had opposed the sale of the
company's shares to Siam City Cement Plc (SCCC) as part of the
company's debt restructuring.

Mr. Prachai has tried to change the firm's debt-restructuring
plan by offering new shares, which he had planned to sell to
SCCC, to the public.

"We believe that it is a delaying tactic by the TPI Polene owner
[Mr. Prachai]. This plan is weak and impossible in practice,"
the source, who is close to this deal, told The Nation.

Earlier this year, the company had agreed in principle to sell
77 percent of the company for US$375 million (Bt16.3 billion) to
SCCC, a unit of Holcim Ltd of Switzerland.  But the deal could
not be concluded on time.

The company's major creditors include Germany's Kreditanstalt
Fur Wiederaufbau (KFW), Bangkok Bank Plc, Krung Thai Bank Plc,
and JP Morgan Chase Bank, the paper said.




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