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

      Friday, March 19, 1999, Vol. 2, No. 55

                    Headlines


* C H I N A   &   H O N G   K O N G *

GUANGDONG INTERNATIONAL: Last-ditch recovery efforts in the works
GUANGZHOU INTERNATIONAL: GZITIC creditors unhappy with meeting
LONG TREND LIMITED: Winding-up petition
UNION POINT INTERNATIONAL LIMITED: Winding-up petition


* I N D O N E S I A *

INDONESIAN SATELLITE: No delay planned for sell-off of Indosat


* J A P A N *

APOLLO LEASING: Apollo Leasing to liquidate
LONG TERM CREDIT: Had capital deficit of 2.5 tril. yen in Oct.
NISSAN MOTOR: Downgrades move company to 'junk bond' status


* K O R E A *

DURAE AIR METAL: Durae Air Metal liquidates
SSANGYONG OIL: Signing of final contract still months away


* M A L A Y S I A *

MALAYAN UNITED: MUI posts RM213.4mil group pre-tax loss
PENGKALEN HOLDINGS: Pengkalen proposes new schemes of arrangement


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

NATIONAL STEEL CORP: Fabricators worry about supply
PHILIPPINE AIRLINES: Three US investors eye stake in PAL
PILIPINO TELEPHONE: Doubts after watchdog threatens parent


* S I N G A P O R E *

DBS LAND: Further provisions for DBS Land?
HOTEL NEGARA: Loss widens to $1.85m
PARKWAY HOLDINGS: Parkway falls prey to Dow fears


* T H A I L A N D *

KASET THAI: Two more held over Wansley murder
KRUNG THAI BANK: Way clear for sell-off by end of next year
SIAM CEMENT: Siam Cement details bond issue
THAI PLYWOOD: Thai Plywood for sale soon


CORRECTION: A notice published in the March 16 edition was
mistakenly posted to Peregrine Investment Limited. It should have
been posted to Peregrine Management Limited. The full corrected
article appears below.

PEREGRINE MANAGEMENT: Notice to creditors to prove debts
--------------------------------------------------------
The creditors of Peregrine Management Limited, which is
being voluntarily wound up, are required on or before
April 1 to send in their names, addresses and particulars
of their debts or claims to the Liquidators of the said
company, David Richard Hague, John Kwok Heem Li at 27th
Floor, Island Place Tower, 510 Island Place Tower, North
Point, Hong Kong, and if so required by notice in writing
from the liquidators, are personally or by their solicitors
to come in and prove their debts or claims at such time and
place specified in such notice, or in default thereof, they
will be excluded from the benefit of any distribution
before such debts are proved.


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

GUANGDONG INTERNATIONAL: Last-ditch recovery efforts in the works
-----------------------------------------------------------------
According to the South China Morning Post, creditor banks of
Gitic are making a last-ditch effort to recover more of their
money by proposing to restructure the company.

Guangdong executive vice-governor Wang Qishan last week commented
that a restructuring at Gitic would be almost impossible.

However, assistant to Guangdong governor Wu Jiesi earlier this
week offered hope to some Gitic creditors that there were still
chances for a restructuring proposal. A creditor bank said
yesterday that creditor banks were told that Mr Wu would meet
those interested in helping out with Gitic's restructuring.

Bankers said they were baffled by the contradicting views of the
two senior Guangdong officials over Gitic's restructuring.

Bankers believe any successful attempt would need at least 10
billion yuan of assets from the Guangdong provincial government,
which is already burdened by troubled Guangdong Enterprises.

The liquidation committee of Gitic has said creditors will be
allowed to register their claims until April 15.


GUANGZHOU INTERNATIONAL: GZITIC creditors unhappy with meeting
--------------------------------------------------------------
The Asian Wall Street Journal reported that the creditors of the
Guangzhou International Trust & Investment Corporation (or
GZITIC) who met with financial authorities were disappointed at
the lack of new information provided.  The meeting was held the
city of Guangzhou with more than 100 creditors and bankers in
attendance.  There was reportedly no updated information and only
an announcement that PricewaterhouseCoopers will provide more
detailed information in June.  

GZITIC is the overseas borrowing arm of Guangzhou, and reportedly
has liabilities of about $2.46 billion, with about $740 million
owed to foreign creditors.  The company defaulted in September
last year on a $30 million syndicated loan arranged by Societe
Generale SA.  


LONG TREND LIMITED: Winding-up petition
---------------------------------------
A petition for the winding up of Long Trend Limited was presented
to the High Court on Mar 1 by Chan Wai Ip of Flat H, 12/F., Hong
Wang Court, 192 Tsat Tsz Mui Road, North Point, Hong Kong, and
the said petition is directed to be heard before the court at
11:00 am on April 21, and any creditor or contributory of the
said company desirous to support or oppose the making of an order
on the said petition may appear at the time of hearing by himself
or his counsel for that purpose, and a copy of the petition will
be furnished to any creditor or contributory of the said company
requiring the same by Tam Lee Po Lin, Nina for Director of Legal
Aid, 27th Floor, Queensway Government Offices, 66 Queensway, Hong
Kong, on payment of the regulated charges for the same.


UNION POINT INTERNATIONAL LIMITED: Winding-up petition
------------------------------------------------------
A petition for the winding up of Union Point International
Limited was presented to the High Court on Mar 2 by Cheung Kit
May, Christine of Flat A, 4th Floor, 39-45 Hau Wo Street, Kennedy
Town, Hong Kong, and the said petition is directed to be heard
before the court at 9:30 a.m. on  April 28, and any creditor or
contributory of the said company desirous to support or oppose
the making of an order on the said petition may appear at the
time of hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by Tam Lee Po
Lin, Nina for Director of Legal Aid, 27th Floor, Queensway
Government Offices, 66 Queensway, Hong Kong, on payment of the
regulated charges for the same.


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

INDONESIAN SATELLITE: No delay planned for sell-off of Indosat
--------------------------------------------------------------
According to the South China Morning Post, the Indonesian
government plans to continue with its privatisation tender plan
for Indosat this month without delay, said a State Enterprises
Ministry official.

The final bidding result will be announced this month as
previously scheduled and not next month, said ministerial
assistant Herwidayatmo.

The government said on Tuesday in its latest letter of intent to
the International Monetary Fund that the privatisation of
telecommunications firms might be delayed by one to two months
pending a decision on a new regulation in the sector.

Separately, the State Enterprises Ministry said the sale of
Indosat shares to strategic investors would continue to be run in
a fair, transparent and competitive manner.

Bisnis Indonesia daily on Tuesday quoted Minister for State
Enterprises, Tanri Abeng, as identifying the three bidders for
Indosat as British Telecommunications, France Telecom and Telstra
of Australia. Mr Abeng said the preferred bidder had been chosen
but could not be announced yet as there had not been
negotiations.

Earlier this month, Indosat corporate development director Safwan
Natanagara was reported as saying that the three bidders were all
seeking a controlling stake in Indosat. He said that under
Indonesian law, the government should hold a majority stake in
all state-owned enterprises. At present the Indonesian government
holds a 65 per cent stake in Indosat, which it plans to reduce to
51 per cent through the tender.

Mr Safwan Natanagara said the government was preparing a scheme
to accommodate the interests of state and foreign investors.


=========
J A P A N  
=========

APOLLO LEASING: Apollo Leasing to liquidate
-------------------------------------------
According to the South China Morning Post, a report said one of
Japan's leading financing firms, Apollo Leasing, which is based
in the northern city of Sendai, has decided to go into
liquidation with debts of about 500 billion yen, snowballed as a
massive amount of loans to clients went sour.

Nihon Keizai Shimbun said Apollo could not persuade its creditors
to waive loan repayments with rehabilitation plans and could
liquidate as early as this month.

The report said Apollo repeatedly asked major creditors,
including Sakura Bank to reduce interest payments on borrowings,
but banks urged Apollo to enter bankruptcy proceedings.


LONG TERM CREDIT: Had capital deficit of 2.5 tril. yen in Oct.
--------------------------------------------------------------
The failed Long-Term Credit Bank of Japan (LTCB) had a capital
deficit of about 2.5 trillion yen last October when it went under
temporary state control, Financial Reconstruction Commission
(FRC) sources said Thursday.

The FRC will formally announce the amount of LTCB's liabilities
exceeding assets next week.

The Financial Supervisory Agency earlier said that according to
LTCB's balance sheets, the bank had 340 billion yen more in
liabilities than assets at the end of September.

Last October, the government declared LTCB insolvent due to huge
bad loans and put it under temporary state control.

But LTCB's deficit has been rising because bad loans are on the
increase due to deterioration in the performance of companies to
which it lent money.

The FRC earlier determined that LTCB stock is worthless because
the bank's capital deficit was still rising.

The evaluation of the stock price will also be officially
announced next week.

LTCB's shares were obtained by the semi-governmental Deposit
Insurance Corp. in late October. (Kyodo News 18-Mar-1999)


NISSAN MOTOR: Downgrades move company to 'junk bond' status
-----------------------------------------------------------
Nissan Motor joined one of Japan's more controversial clubs last
week. Amid the flurry of speculation about its future, it was
relegated to "junk bond" status by Moody's, the US credit rating
agency.

The move prompted predictable public protests from the
government.

Less visibly, however, it is also creating a new business
opportunity.

For Nissan is only the latest in a long list of Japanese
companies who have recently been downgraded into this club.

With the number of club members likely to swell even further
soon, the question preoccupying investors is whether this will
lead to the creation of Japan's first liquid and credible high-
yield bond market.

There are certainly factors in its favour. Government bond yields
have seen a sharp decline recently, while credit spreads among
corporate bonds have polarised.

Though bonds with high credit rating continue to track JGB yields
relatively closely, lower-rated bonds have seen a pronounced
widening of yield spreads, making this an area of particular
interest for investors looking for extra yield. (Financial Times
18-Mar-1999)


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

DURAE AIR METAL: Durae Air Metal liquidates
-------------------------------------------
The Korean language Maeil Kyungje reported in its Business Briefs
section that the Seoul District Court has approved the Durae Air
Metal Company's liquidation plan.


SSANGYONG OIL: Signing of final contract still months away
----------------------------------------------------------
According to the South China Morning Post, it would take at least
one to two months for the final contract for the planned sale of
Ssangyong Oil Refining to SK Group to be signed by the three
parties, said Cho Nam-do, a Ssangyong vice-president who was
referring to Ssangyong, SK and Ssangyong's partner in Ssangyong
Oil - Saudi Aramco.

Aramco said on Sunday it had not yet approved the proposed sale
of its refiner to SK Group. An Aramco statement said it "will
only do so if its concerns can be satisfactorily resolved". It
said its wholly owned subsidiary Aramco Overseas Company "has
made it clear in discussions with both Ssangyong Cement and SK
Corp that it has serious concerns over the potental sale of
Ssangyong Oil shares to SK". However, it did not say what its
concerns were.

Mr Cho said Ssangyong tossed the offer to Aramco, but Aramco
turned it down and the offer went to SK. He said the two groups
began talking over the sale from last December.

Ssangyong is Korea's third largest oil refiner. It has a capacity
of 525,000 barrels per day (bpd) and a 13 per cent market share
while SK has 810,000 bpd and a 34 per cent share.

Mr Cho said the group planned to use the proceeds from the sale
to reduce Ssangyong Cement's debt.

Ssangyong Cement reported a net 421.53 billion won loss last year
from a 20.78 billion profit a year ago, largely due to the taking
over of debt from sister firm Ssangyong Motor, sold to Daewoo
Group last year.


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

MALAYAN UNITED: MUI posts RM213.4mil group pre-tax loss
-------------------------------------------------------
Malayan United Industries Bhd (MUI) has recorded group pre-tax
loss of RM213.47mil on sales of RM2,221.2mil for the year ended
Dec 31, 1998.

In 1997, it posted a group pre-tax profit of RM83.81mil on a
turnover of RM2,310.4mil.

Announcing the unaudited results yesterday, MUI said the adverse
performance was mainly due to the very substantial provision made
for doubtful debts amounting to RM507.6mil by the stockbroking
subsidiaries, Pengkalen Securities Sdn Bhd and Kimara Equities
Sdn Bhd.

It explained that the provision was necessitated by the rapid
decline in the market capitalisation of the KLSE since July 1997
which led to a decline in the value of shares held as security
for various margin facilities given.

In the year under review, MUI had completed the disposal of
cement-based associated companies for a total of RM1.2bil
resulting in a capital gain of RM588.3mil for the group.

This together with the gains by the group's international
operations arising from the sale of a hotel in the US and the
disposal of part of its shareholding in South China Morning Post
(Holdings) Ltd in Hong Kong have mitigated the group's overall
position.

These disposals formed part of MUI's rationalisation programme.

The year also saw MUI acquiring 40% stake in Laura Ashley
Holdings plc, which expanded the group's operations in Britain
and US.

MUI said as a result of certain steps implemented in 1998, Laura
Ashley is showing positive signs of reversing the company's
declining performance with improvements across a number of key
ratios which include profit margins.

At the company level, MUI's pre-tax profit fell to RM23.76mil
from RM92.49mil in 1997. Sales dropped to RM24.77mil from
RM69.98mil. (Bernama and The Star Online 18-Mar-1999)


PENGKALEN HOLDINGS: Pengkalen proposes new schemes of arrangement
-----------------------------------------------------------------
Pengkalen Holdings Bhd, which suffered severe setback because of
the economic downturn, has proposed a new set of schemes of
arrangement to put it on a stronger financial position for a more
profitable year.

The group recorded a group pre-tax loss for the year ended Dec
31, 1998 of RM955.23mil against a loss of RM81.32mil for the
April 1 to Dec 31, 1997 financial period.

The bulk of losses came from exceptional items amounting to
RM750.09mil, comprising mostly provision for doubtful debts
(RM590.08mil), goodwill written off (RM86.943mil), provision for
contingent liabilities (RM26.361mil) and provision for diminution
in value of investments (RM20.48mil).

Group operating loss was at RM205.14mil against the RM1mil loss
in the previous nine months on the back of a turnover of
RM550.67mil against RM650.28mil previously.

At company level, Pengkalen Holdings' pre-tax loss was
RM380.07mil against a loss of RM11.11mil while turnover fell to
RM8.16mil from RM9.66mil.

Its subsidiary Pengkalen Capital Bhd suffered a pre-tax loss of
RM713.27mil against a loss of RM24.82mil for the April 1 to Dec
31 period on the back of a turnover of RM85.39mil against
RM226.26mil previously.

At company level, it recorded a loss of RM20.05mil against a loss
of RM62,000 previously.

The proposed schemes, which will also involve debt-equity
conversions, are to reduce the liabilities of the group and to
put Pengkalen Holdings on a stronger footing to undertake further
businesses with profit and growth potential.

It will reduce its total debts from RM1,811.4mil to RM593.4mil.
(The Star Online 18-Mar-1999)


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

NATIONAL STEEL CORP: Fabricators worry about supply
---------------------------------------------------
Steel fabricators have expressed concern over the debt woes of a
Malaysian-owned steel firm which may disrupt its supply of raw
materials.

Philippine Steel Rolling Mills Association (PSRMA) president
Wellington Tong told a news briefing in Manila that the National
Steel Corp (NSC) had not been churning out the materials they
needed to make steel products.

He said the materials included cold and hot-rolled coils, which
PSRMA members buy from NSC and process into various steel
products for the domestic market.

NSC, the Philippines' largest steel firm, is majority owned by
Hong Kong-based Hottick Ltd, reportedly the offshore investment
unit of Renong Bhd.

Tong noted that NSC only resumed production this month after five
months of work stoppage due to its debt woes spawned by last
year's regional currency turmoil.

The NSC is burdened with debts of between 12 billion and 16
billion pesos. (Bernama and The Star Online 18-Mar-1999)


PHILIPPINE AIRLINES: Three US investors eye stake in PAL
--------------------------------------------------------
Three US institutional investors have expressed interest to
acquire a stake in debt-ridden Philippine Airlines (PAL) through
the purchase of the airline's assets, according to Finance
secretary Edgardo Espiritu.

Espiritu, however, said the interested investors and their local
partners may have to form a holding company which would absorb
the assets of the ailing flag carrier for $200 million.

"One option is for the new investors to set up a consortium and
buy the assets of PAL," he said.

Through the holding firm, Espiritu said, foreign investors will
be able to acquire majority control PAL, although indirectly,
without violating existing rules.

Under the law, foreigners cannot own more than 60 percent of
public utilities such as those engaged in transportation,
telecommunications, water, and electricity.

Espiritu met with the management of the airline including its
majority-owner Lucio Tan Tuesday night. "They (PAL officials)
talked about the plans and direction of the company. It's clear
that they want to save PAL."

"PAL will survive. It will continue to be the country's flag
carrier," he said.

Although he refused identify the prospective investors, he said
these US firms are already negotiating with PAL management. He
said they have three months to wrap up their negotiations.

Under the rehabilitation plan submitted to the Securities and
Exchange Commission (SEC), PAL has to find an investor who would
infuse $200 million into the airline by June 5, 1999.

However, he said Tan did not give any commitment that he would
continue to be an investor in the proposed holding company.

He also disclosed that government financial institutions with
stakes in the airline are not interested in infusing additional
equity into PAL.

Espiritu said he has informed PAL officials about the plan of the
Estrada administration to review the country's air treaties with
other countries such as the landing rights.

The review is aimed at giving local airline firms a level playing
field with foreign airlines, both in domestic and overseas
routes.

Putting PAL in equal footing with foreign airlines is part of its
strategy to turn around the firm's finances.

Under the rehabilitation plan, which would be approved by the SEC
by April, PAL expects to post a surplus in its cash position by
September this year, thus, enabling it to resume payments to its
creditors.

Aside from the infusion of $200 million in fresh equity, the
revised rehabilitation plan submitted to the SEC on March 15, the
firm also promised to sell its so-called non-core assets like its
maintenance, catering, and engineering units; downsizing its
fleet to 22 aircraft; and some reforms in its marketing strategy.

Espiritu, however, denied that the firm is also seeking a
condonation of the interest on its debts. He said the creditors
want PAL to resume payments of interest once the rehabilitation
plan is approved by the SEC. (Manila Times 18-Mar-1999)


PILIPINO TELEPHONE: Doubts after watchdog threatens parent
----------------------------------------------------------
According to the South China Morning Post, Piltel has suffered
another blow to the credibility of its restructuring attempts as
Salomon Smith Barney said it expected financial restructuring
progress but it remained seriously concerned about the longer-
term viability of the business.

First Pacific controls Piltel through its 17.2 per cent
controlling stake in Philippine Long Distance Telephone (PLDT),
bought for US$750 million in November.

Piltel last week revealed a 4.1 billion peso net loss last year.
Since then it has presented its creditors with several debt-
restructuring proposals.

A third of Piltel's debt is owed to Marubeni Corp of Japan.

PLDT's most recent proposal included a pledge to inject two
billion pesos into Piltel in exchange for Marubeni converting all
or part of its debt into equity.

However, Salomon Smith Barney commented in the latest issue of
its Asia Telecom Perspective released yesterday that the key to
turning Piltel into a viable and sustainable business will
involve major improvements to its current poor asset returns
which is less than half for cellular and 15 per cent for fixed
line. It said there was a considerable surplus of cellular
capacity in the Philippines, and an inherent conflict of
interest with First Pacific's own Smart Communications cellular
service.

The research also wrote that Piltel's Mobiline brand was
considered one of the weaker brands.

On Tuesday, Securities and Exchange Commission chairman Perfecto
Yasay said he would not hesitate to order the suspension of PLDT
shares if the new management continued to refuse to disclose its
plans for Piltel.


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

DBS LAND: Further provisions for DBS Land?
------------------------------------------
Analysts say further provisions are required for DBS Land's
investment properties and long-term investments -- despite the
hefty $901 million writedown for 1998.

The value of the group's investment properties is likely to fall
a further 10-20 per cent during this year and the next, say
analysts.

"For the investment properties, it's only down 20 per cent from
last year-end numbers and I think the independent valuers are too
generous with their valuations," said Lam Yew Hung, a property
analyst with Kim Eng Securities.

DBS Land shocked the market on Tuesday with a net loss of $239
million, with provisions and writedowns totalling $1.3 billion in
1998.

Analysts say some institutions are disillusioned with the
direction DBS Land is headed. The group said it would reduce its
investment properties and focus more on high service content
businesses such as service apartments, hotels, healthcare and
property fund management. (Singapore Business Times 18-Mar-1999)


HOTEL NEGARA: Loss widens to $1.85m
-----------------------------------
Hotel Negara went deeper into the red with a net loss of $1.85
million for 1998, compared to a net loss of $1.64 million the
year before. Turnover fell 20 per cent to $10.76 million. Hotel
Negara now has a loss per share of 12.33 cents, compared to a
loss per share of 10.94 cents in 1997. The company has not
declared any dividend for 1998. (Singapore Business Times
18-Mar-1999)


PARKWAY HOLDINGS: Parkway falls prey to Dow fears
-------------------------------------------------
Shares of Parkway Holdings yesterday shed 10 cents to close      
at $3.26, a casualty of a jittery market waiting to see what      
would happen now that the Dow has broken the 10,000 barrier.

The lacklustre showing of Parkway's share price comes despite its
announcement of a strong 42 per cent rise in profit and a well-
received move to sell off its non-core assets.

Analysts were positive about the group's intention to sell off
its non-core assets to reduce its debt burden. The property-
turned-healthcare group said this will include flagship Parkway
Parade and its 50 per cent stake in Trademart in Singapore. The
properties have been for sale since 1996 when Parkway started
moving into healthcare.

The group's debt burden stood at $830 million last year while its
debt-to-equity ratio was 1.09. "This still represents a very high
level of borrowings, so it would help to reduce debt and lower
interest expenses," said investment analyst Jacqueline Low of
Vickers Ballas. "They are now a healthcare company and property
is a non-core area. So there's no point in tying up the capital
there." (Singapore Business Times 18-Mar-1999)


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

KASET THAI: Two more held over Wansley murder
---------------------------------------------
Police on Wednesday arrested two more suspects, including a
police private based in Chon Buri, over the Michael Wansley
murder case, while trying to locate three other suspects facing
arrest warrants.

Identified by the first arrested suspect Chalong Phinphong as a
co-mediator for the shooting, Pol Pvt Kraiwal Buamas, has been
detained for questioning at the provincial police headquarters to
which he is attached.

After several hours of questioning on Tuesday night after his
arrest, police said Chalong implicated Kraiwal, an officer
attached to a special operations unit in Chon Buri, as a contact
person for a gun-for-hire gang that handled the shooting job.

Chalong was flown by helicopter from Nakhon Sawan, where the
shooting took place and where he had been detained, under heavy
police security to Chon Buri in the morning where he picked out
Kraiwal at an identification parade before being flown back to
Nakhon Sawan.

Police last night arrested a third suspect known as Hassanai
Sathawal in Nakhon Si Thammarat province. He was accused of
riding a motorcycle for the gunman. No further details of the
arrest were available at press time.

Police also found that the motorcycle used in the killing, which
was found in a large pond on Tuesday following Chalong's
confession, was bought last month from a shop in Ayutthaya by a
man who claimed his name was Somchai Thongchai without showing
his ID card to prove it.

While continuing to produce more evidence for an arrest warrant
against a fourth suspect, police are seeking to arrest three men
whose names were released on Tuesday.

Police chief Pracha Promnok said police believed the three men
were still hiding in Nakhon Sawan.

A Takhli station officer said evidence found in Wansley's office
showed that he may have been aware about the plot on his life
several weeks before the shooting as well as about the massive
graft in the ailing sugar firm masterminded by the unnamed
suspect.

Pol Maj Thes Dancha-aim also said Wansley was travelling in a van
to the company compound in Takhli district instead of in a sedan
as a result of his last-minute order to minimise the chances of
him being harmed.

A police source said there was sufficient evidence against the
unnamed suspect, but police have been unsuccessful in convincing
the provincial authorities to approve an arrest warrant for the
man, who is believed to be an executive of Namtal Kaset Thai Co
Ltd.

Somphong Bangsakul, the alleged gunman, and brothers Boonphan and
Somchoke Sutthiwiriwan who are company employees, disappeared a
few days before police leaked information about their
identification.

The three men, as well as the unnamed suspect and Chalong, are
prime suspects in the murder case.

Pracha earlier warned police investigators, who were handling the
case, against leaking too much information to the press because
it may affect their work and the prosecution of all the suspects
in court.

As a result of an immediate order from the Interior Ministry to
eliminate gun-for-hire rackets, Bangkok police on Wednesday
arrested four men who they said committed several crimes,
including a recent market robbery in Suthothai and the murder of
a businessman in Bangkok's Bang Khen district.

The four men are Thongdee Phromekha, the ring leader, and his
brother Thongdee, Suphan Nasome and Suay Khruaklad, police said.

They added that all of them have confessed and have been charged
with premeditated murder. (The Nation 18-Mar-1999)


KRUNG THAI BANK: Way clear for sell-off by end of next year
-----------------------------------------------------------
The Finance Ministry and the Bank of Thailand have formally
approved a restructuring plan for Krung Thai Bank, clearing the
way for the eventual privatisation of the state-owned bank by the
end of 2000.

"We are delighted to have received approval of our restructuring
plan," Mechai Viravaidya, Krung Thai's chairman, said yesterday.

"This vote of confidence in the bank's plan and the management's
ability to implement it, enables us to move forward with speed
and forcefulness to return Krung Thai Bank to profitability and
prepare for privatisation by the end of 2000."

The reorganisation plan submitted to the Bank of Thailand last
December provided for recapitalisation of 185 billion baht.

Krung Thai Bank has already received 77 billion baht from the
government through a debt-for-equity swap. The remaining 108
billion baht is expected to be released shortly. (Bangkok Post
18-Mar-1999)


SIAM CEMENT: Siam Cement details bond issue
-------------------------------------------
Thai industrial conglomerate Siam Cement plc will raise at least
10 billion-15 billion baht (US$268mil-US$403mil) from an initial
tranche of domestic five-year bonds early next month, one of the
issue's lead managers said yesterday.

Thavich Thanachanant, head of merchant banking at Thai Farmers
Bank plc, said Siam Cement's first tranche of bonds, subject to
final approval by shareholders on March 31, would be the biggest
ever domestic corporate debt issue in Thailand.

Siam Cement told the Stock Exchange of Thailand on Tuesday it had
appointed Thai Farmers Bank and Merrill Lynch Phatra Securities
plc as joint lead managers for up to 50 billion baht of its
planned senior unsecured baht bonds.

The banker said that buyers of Siam Cement's initial issue would
be offered options of floating and fixed coupons to be finalised
after the issue's book building on March 22-23.

Thavich said the floating coupon would be based on one-year fixed
deposit rates of major Thai banks while the fixed coupon would be
at least 200 basis points over one-year bank fixed rates.

He said most of Siam Cement's first straight issue, offered
without put or call options, would be privately placed with
institutional investors but at least a minor portion was being
set aside for individual investors preparing to subscribe to at
least 10 million baht each.

"Part of the funds from the first tranche will be used for
diversifying the denomination of Siam Cement's foreign debt now
mostly kept in dollars. The idea is to swap more of it into yen,"
he said.

Analysts estimated that Siam Cement had at least US$4.2bil of
foreign debt exposure. (Reuters and The Star Online 18-Mar-1999)


THAI PLYWOOD: Thai Plywood for sale soon
----------------------------------------
The future of Thai Plywood Company, a debt-ridden state
enterprise, is likely to be settled this month.

The company would be wholly or partially privatised by the
executive board, Colonel M.R. Aduldej Chakrabandhu, managing
director of the Forest Industry Organisation, said yesterday.

Currently with 800 employees, the company was established by the
Agriculture Ministry several decades ago and operated
satisfactorily until the recent recession.

Its problems began with decision to build a factory in Saraburi
to make medium-density fibreboard. The 1.5-billion-baht venture
with 130 workers was expected to earn substantial revenue from
supplying furniture-makers tapping into the country's housing
boom.

The company borrowed 1.6 billion baht from Thai Military Bank and
more than 100 million from Krung Thai Bank to start the project.
But when the recession began, Thai Military Bank declined more
credit fearing the venture would not be viable. Thai Plywood then
faced the burden of high interest payments that it could not
afford, and began a so far unsuccessful search for partners.
Offers from Taiwanese and Japanese investors were considered too
low.

The company is negotiating with creditors to ease terms for
interest payments that are accruing at 100 million baht a month,
while its total debt is nearing three billion baht.

Pairoj Rataporn, Thai Plywood's deputy managing director, said
monthly revenue was now only 50 million baht, compared with 100
million a year ago, because of falling demand and the need to
repair machinery.

However, cashflow would likely improve with exports of hardboard
worth 10 million baht a month to Thailand's neighbours, as well
as the resumption of regular operations after maintenance was
completed. (Bangkok Post 18-Mar-1999)


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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