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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, August 23, 1999, Vol. 2, No. 163

                            Headlines


* C H I N A  &  H O N G  K O N G *

BERJAYA HOLDINGS: Annual loss for second year
CHINA.COM: Posting losses while growing business
CHINA UNICOM: Running short of cash, listing delayed
GUANGDONG INTN'L LEASING: Assets compiled for liquidation
HONG KONG PARKVIEW GROUP: Posts substantial annual loss
LEADING SPIRIT HOLDINGS: Working on rehab agreement
ORIENT OVERSEAS: Posts first-half loss PAUL Y-ITC
CONSTRUCTION: Posts annual loss
PERFECT TREASURE HOLDINGS: Posts annual loss
UNION BANK OF HONG KONG: Posts first-half loss
WINFAIR INVESTMENT: Posts annual loss


* J A P A N *

DAI-ICHI KANGYO BANK: Layoffs, cutbacks with merger
FUJI BANK:  Layoffs, cutbacks with merger
INDUSTRIAL BANK OF JAPAN: Layoffs, cutbacks with merger


* K O R E A *

DAEWOO GROUP: In technical default on debts
DAEWOO GROUP: Steering committee representation not set


* M A L A Y S I A *

ROCK CHEMICAL INDUSTRIES: Proposes restructuring
SOUTHERN STEEL BHD: Half-year loss less than expected


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

MEGAWORLD PROPERTIES: GSIS bills it for PhP378 million
PHILIPPINE AIRLINES: Boeing again objects to rehab plan


* S I N G A P O R E *

IPCO INTERNATIONAL: In major restructuring


* T H A I L A N D *

KRUNG THAI BANK: Chairman prepared to step down
NAKORNTHAI STRIP MILL: Underwriters sued for more than $33M
ONE HOLDING PLC: Liabilities decline,debt negots successful
SAWASDI HORRUNGRUANG: Vow to fight on "against all odds"
SHIN SATELLITE: Bond issue to reduce foreign debt awaits ok
THAI TELEPHONE: Approval of rehab plan expected in 3 mos.


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

BERJAYA HOLDINGS: Annual loss for second year
---------------------------------------------
Property investor Berjaya Holdings (HK) narrowed losses to
$8M for the year ended March 31, down from $16.4M the
previous year.  Turnover took a sharp 32% dive to $2.6M
compared with $3.9M.  Exceptional losses, at $1.9M, fell
sharply from last year's $22.3M.

CHINA.COM: Posting losses while growing business
------------------------------------------------
China.com - the first Hong Kong-based Internet company to
list on the Nasdaq market in the United States - will
continue to posts operating losses while it focuses on
growing its business with a US$150 million war chest.

China.com yesterday reported a $2.2 million loss excluding
exceptional gains for the three months to June 30, larger
than a $1.7 million loss during the same period a year
earlier.  However, the company posted a one-time gain of
$4.1 million from the listing of its sister company 24/7
Media and amortisation of goodwill, which boosted its
bottom line to a $1.9 million profit for the period.

Chief executive Peter Yip said despite continuing losses
from operations the company's results had "exceeded both
internal and external expectations".  He said page views of
China.com's Web sites - which stood at 500,000 a day at the
beginning of the year - had exceeded one million a day by
the end of the second quarter and were 1.3 million a day in
July.

Revenues rose 174 per cent to $2.4 million due to stronger
than expected advertising revenue growth.  Advertising
revenues grew to $878,000 from $178,000 the previous year,
while revenue from e-business solutions - its consultancy
side - grew to $1.38 million from $673,000.

Chief financial officer David Kim said China.com was at the
"hyper-growth stage" in its development, meaning it would
sacrifice profitability for the next three years in order
to pursue a fast-growth strategy.  "Typically, companies
will take their losses during this period. But certainly
profitability is in the future," he said.

Mr Kim said the company was pursuing four acquisitions
which he expected would be closed in the near future. Those
follow the completion of five such deals in the second
quarter of this year.

"The first five deals were each smaller than $10 million,
and I expect the next four - in Korea, Singapore, Hong Kong
and the mainland - will also be less than that," he said.

China.com raised more than $80 million in an initial
offering on Nasdaq last month.  When combined with cash
from earlier rounds of financing, it had about $150 million
in cash on its balance sheet.  Jardine Fleming Research
investment analyst Osamu Wilde said the results "looked
very good".

"China.com certainly are making the right noises . . . and
seem to be executing their strategy," he said, referring to
a plan to decrease reliance on web design consultancy for
revenues.  He added that the company was expected to reach
break-even level sometime in 2002.  "Advertising is the
best long-term bet since there's the most scalability for
revenues there. Traditional web design doesn't give
shareholders as much value," he said.  (South China Morning
Post  21-Aug-1999)

CHINA UNICOM: Running short of cash, listing delayed
----------------------------------------------------
China's number two telephone company is running short of
cash due to a stand-off with foreign investors and will
postpone a planned listing until it is resolved, foreign
industry executives said on Thursday.

One well-informed executive said the China Unicom listing
planned for Hong Kong, and possibly the United States, in
October may be delayed by six months.  But at the same
time, the size of the listing may be increased from $1.0
billion to $5.0 billion, said the executive, who declined
to be identified.

"The real deadline is next April," he told Reuters. "The
goal is $5 billion."

Unicom Executive Vice President Wang Jianzhou, contacted by
telephone, declined comment.  "I can't say anything about
that," he said.

Executives for underwriter Morgan Stanley Dean Witter also
had no comment, citing securities regulations on
disclosure.   Set up in 1994 to challenge the then monopoly
of China Telecom, China Unicom stumbled along for years
with only lukewarm sponsorship from Beijing.  Starved for
cash, it turned to overseas investors.

To skirt a prohibition on foreign ownership in domestic
telecoms operators, companies including France Telecom,
Bell Canada, NexTel and Sprint set up ventures with Chinese
companies which in turn invested in Unicom.  But last year
Beijing declared the scheme -- called China-China-Foreign
(CCF) ventures -- "irregular" and ordered Unicom to unwind
the contracts.

The move froze $1.4 billion in investment from more than
two dozen foreign companies which put money into Unicom's
mobile phone, paging and fixed-wire networks.  China Unicom
has offered to repay the investments with interest to some
companies.  It has settled with a few, and on Wednesday
announced a deal with Japan's Nippon Telegraph and
Telephone.

But several foreign companies have banded together and
demanded equity in Unicom or buyout packages that take into
account lost potential revenues and the costs of supporting
the networks -- figures two or three times the initial
investments.  Some are threatening to try to block Unicom's
listing by complaining to securities watchdogs in their
countries.

"I think without resolving CCF it's going to be incredibly
difficult" for Unicom to list, said Edison Lee, an analyst
with Credit Lyonnaise Securities Asia in Hong Kong.  "If
you try to take the CCF ventures out of the IPO, then
what's left in Unicom is actually very, very little. It
will become very unattractive to investors," Lee said.

Executives familiar with Unicom say the company is having
trouble expanding, let alone finding funds to buy off CCF
partners.  "Unicom does not have access to capital," said
one foreign partner with a CCF joint venture. "It has
promises, but little success at raising capital.

"They have a large bank line that's been set aside for them
by the Bank of China, but they are not able to draw down on
it or they're not willing to draw down on it" until the CCF
issue is resolved, said a Western industry executive.

Unicom's headquarters in Beijing told branches they would
have to rely on local bank loans from July 1, according to
industry analysts who say local banks have largely refused
to extend credit.  Analysts say Unicom's best hope will be
to convince CCF partners to restructure their investments
as loans or leases, or accept softer buyout offers -- a
plan which could work for at least a few of the foreign
companies.

"We don't want to burn our bridges" over the CCF issue,
said the head of a Western telecommunications firm.
(Reuters; NewsHound  19-Aug-1999)

GUANGDONG INTN'L LEASING: Assets compiled for liquidation
---------------------------------------------------------
The total recoverable assets of the mainland's Guangdong
International Leasing, a unit of the failed Guangdong
International Trust and Investment Corp (Gitic), are 260
million yuan (HK$243.83 million).

Details of the assets - including loans, account
receivables and long-term investments - were released by
liquidators at the second creditors' meeting held on
Wednesday in Guangzhou, the Shenzhen-based Financial
Morning Post said.

At the first creditors' meeting on 21 April, liquidators
received a total of 81 claims on the company's assets
amounting to 2.21 billion yuan, it said.  Liquidators had
confirmed 73 claims, it said.  The Guangzhou Intermediate
People's Court has begun hearings of 19 cases in an effort
to recover assets of the leasing firm.  The court has
confiscated 10.72 million yuan and US$8.93 million
(HK$69.65 million) in assets from firms which owe money to
the Gitic leasing arm.

Gitic was shut down by the central bank in October. It
filed for bankruptcy in January and liquidators have said
that total claims on the trust stood at 38.8 billion yuan
against recoverable assets estimated at only 6.5 billion
yuan.  (Reuters; Hong Kong Standard  21-Aug-1999)

HONG KONG PARKVIEW GROUP: Posts substantial annual loss
-------------------------------------------------------
Passenger ferry operator and property investor Hong Kong
Parkview Group recorded a massive increase in net losses to
$484.7M for the year to March 31 compared with losses of
only $49.8M during the previous year.

Turnover also dropped 63.2% to $312M in the same period,
according to a statement.  Loss per share was 90.54 cents
against 9.3 cents.  The net losses were mainly due to
operating losses of $211M while the loss in exceptional
items amounted or $97M.

Exceptional losses included a $165M loss on the write-off
of premiums on acquisition of an associated company.  There
were also a $108M loss due to a bad debt write-off and a
waiver of advances to an associated company.  The group
made $175M in exceptional gains on the sale of subsidiaries
and associated firms

LEADING SPIRIT HOLDINGS: Working on rehab agreement
---------------------------------------------------
Leading Spirit (Holdings) said yesterday it hopes to reach
a restructuring agreement with creditor banks on the $1
billion its owes them in the next three months.

Executive director Kathy Chan So-kuen said the group had
submitted a five year plan to creditors.  The first phase
would involve the repayment of less than 10 per cent of the
debts with the proportion to increase slowly.  She did not
give any more details on the restructuring proposal but
said the group now repays about $7 million interest to
creditor banks each month.

Leading Spirit said it believed the newly acquired hi-tech
business in Jilin would contribute to profit substantially
in the next few years.  Shareholders of Leading Spirit
(Holdings) have approved changing the firm's name to
Leading Spirit High-Tech (Holdings).

ORIENT OVERSEAS: Posts first-half loss
--------------------------------------
Orient Overseas (International), parent of Orient Overseas
Container Line (OOCL), has reported a loss attributable to
shareholders of US$1.54 million for the six months to June
30, compared with a loss of $14.81 million in the previous
corresponding period.  Turnover rose 10.75 per cent to
$969.31 million from $875.19 million.  Loss per share was
0.3 cents.

"The profit before taxation of $5.7 million represents an
improvement in our performance of $17.6 million from the
first half of 1998 and brings a better outlook for the
remainder of the year," OOCL chairman and chief executive
Tung Chee-chen said.

He said the recovery in containerised transportation had
been assisted by high consumer demand in the United States
for Asian goods.  OOCL chief financial officer Harry
Wilkinson said with the continued strength in the US
economy, the improving European economy and signs of Asian
recovery, the company was optimistic the second half would
be positive.

He said the company's results had improved greatly in the
second quarter compared with weak results in the first,
which were due to slack sales after the Christmas season
and the closure of factories during the lunar new year.
Asked about OOCL's container throughput on various trades,
OOCL general manager for sales and marketing, Kim Balling
declined to give specifics, but said a third of OOCL's
throughput was in the trans-Pacific, another third in
intra-Asia, 20 per cent in Asia to Europe and the remainder
in the Middle East and other destinations.  Intra-Asian
trade had doubled in the past few years, he said.  (South
China Morning Post  21-Aug-1999)

PAUL Y-ITC CONSTRUCTION: Posts annual loss
------------------------------------------
Contractor Paul Y-ITC Construction Holdings reported a net
loss of $797.93M for the year ended March 31, after
provisions for investments and properties of $1B.

This compares with a net profit of $209.53M in the previous
year, which saw provisions of $219.49M.  Turnover rose
13.3% to $11.68B from the previous year, while operating
profit before exceptional items fell 40.9% to $177.3M.  A
$271.98M provision was made to reflect losses on disposal
of subsidiaries, of which $150M came from sale of a 20%
stake in Australia-listed contractor Downer Group to
Hutchison Whampoa.

PERFECT TREASURE HOLDINGS: Posts annual loss
--------------------------------------------
Perfect Treasure Holdings posted a net loss of $47.32
million for the year to 31 March after incurring $60
million in provisions, primarily for doubtful debts.

Turnover fell 51.9 per cent to $1.08 billion.  Perfect
Treasure distributes photographic and consumer electrical
products, and makes telephone system and application
software on the mainland.  The company reported that market
prices of audio-visual products dropped sharply as a result
of price competition triggered by the devaluation in most
Asian currencies.  To clear stocks, the group lowered
prices, and this in turn brought a loss to the group.
Turnover also fell as no new product was introduced.

UNION BANK OF HONG KONG: Posts first-half loss
----------------------------------------------
A dramatic jump in provisions for bad and doubtful debts
sent Union Bank of Hong Kong into red for the first six
months to 30 June, and the losses prompted the institution
to announce a $556 million one-for-two rights issue.

The bank reported a net loss of $557.1 million, its worst
first-half showing since the takeover by the China
Merchants Group.  In the previous year, Union Bank posted
interim net profits of $123.51 million.

"These are the worst half-year results we have ever had
since the takeover by China Merchants Group. However, the
huge provisions will further stimulate our morale,"
managing director and chief executive Chris Chan Chi-keung
said.

Charges for bad and doubtful debts rose sharply to $656.21
million for the first half, up 1,725 per cent from $38.04
million a year earlier.  Mr Chan said the need for further
loan provisions in the second-half depended on the results
of mainland companies' work-out and debt recovery, as well
as interest rate increases and the value of the yuan.

Non-performing loans reached $1.26 billion or 19.5 per cent
of total loans.   The bank attributed the huge sum to the
sustained deflation and high unemployment, as well the
prolonged credit squeeze.  The bank said it has maintained
a coverage ratio of 76.1 per cent for overdue loans.
China-related loans totalled $3.7 billion or 28.3 per cent
of total loans.

Operating profits before provisions were down 37.3 per cent
at $101.48 million.  Net interest income shrank 26.9 per
cent to $159.02 million.  Total loans declined to $13.1
billion from $14.35 billion at the end of last year.

Union Bank yesterday also announced a one-for-two rights
issue of new shares at $3.70 each, in a bid to raise $556
million to recapitalise.  The issue, if successful, would
raise its capital-adequacy ratio to 18 per cent from 14.1
per cent. The bank said China Merchants will fully
underwrite the portion pertaining to its 51 per cent
shareholding.  The rest of the issue will be divided
between Tai Fook Capital and Vickers Ballas Capital, a
statement from the bank said.

The bank did not declare any interim dividend.  The bank's
chairman Fu Yu-ning said China Merchant Holdings has full
confidence in the new management and added that it is fully
committed to Union Bank, and despite the losses, Union Bank
says there is reason to be optimistic.

"The new management will be more aggressive and we are also
strengthening our credit risk management," Mr Chan said,
adding that the bank would also benefit from increasing
co-operation with China Merchants Bank and China
Communications Securities. Union Bank last month appointed
Chris Chan Chi-keung as its new managing director,
replacing David Yau Man-tak.  Both institutions are part of
the China Merchants Financial Group.

The bank's results are its worst since the mainland's China
Merchants Group took a controlling interest in 1986.
Analysts said they expected the troubles of Union Bank and
Hongkong Chinese Bank to toughen the Hong Kong Monetary
Authority's stance on pushing forward merger and
acquisitions in the banking sector in an effort to make it
more competitive.

Chairman Fu Yu Ning - who is also an executive director at
China Merchants Group - described the Union Bank's
provisioning policy and the rights issue as "bitter
medicine" that would lead it to recovery.  However, Mr Fu
said the bank would still need to make provisions for bad
debts in the second half, although they would be
substantially lower than they were in the first six months.

Union Bank's Mr Chan said the amount of second-half
provisions needed would depend on the progress of
restructuring of corporate loan accounts in the mainland.
Among these accounts are the well-publicised debt
restructurings of Guangdong Enterprises (Holdings) (GDE)
and Guangdong International Trust and Investment Corp
(Gitic).  Mr Chan declined to disclose the amounts the bank
had loaned to these troubled mainland entities but said it
had made a 20 per cent provision for GDE exposure and a 50
per cent provision for Gitic exposure.

The bank's loans in the mainland totalled $3.7 billion at
the end of June, or 28 per cent of its loan book.  Non-
performing loans amounted to $2.55 billion, or 19.5 per
cent of its loan book - the highest level in the industry -
up from $1.3 billion as at December 31 last year. Mr Chan
said the bank had stepped up its efforts to recover its bad
debts by overhauling the credit department and special
asset team.  In the first six months this year, $443
million in bad loans had been recovered.

He said the bank would strengthen its co-operation with
China Merchants Bank (CMB), which is owned by the same
parent, in areas of debt recovery and new business
ventures, making use of CMB's 166 mainland branches.  Mr Fu
said it was premature to forecast any merger or other forms
of equity relationship between Union Bank and CMB, but co-
operation would definitely increase.  (Hong Kong Standard,
South China Morning Post  21-Aug-1999)

WINFAIR INVESTMENT: Posts annual loss
-------------------------------------
Winfair Investment's shareholders have approved a final
dividend of 12 cents a share for the year ended March 31,
despite the company's loss of $20.1 million in the period.

The poor performance was attributed to exceptional losses
incurred from the disposal of share investments and
provisions for diminution in property values.

"The company still has about $90 million cash in hand, and
a zero gearing ratio," executive director Ng Tai Wai said.
"So we think it is appropriate to recommend a dividend this
year," Mr Ng said.

A year earlier, the company had earnings of $27.72 million,
and paid the same dividend of 12 cents.  Mr Ng said the
company would this year sell industrial properties and keep
commercial sites.

"Rental income [from the commercial properties] constitutes
the main part of the company's operational profit," he
said.   "The [annual] yield [of the commercial property]
can be up to 8 to 10 per cent."

The company would also consider purchasing quality shares
as well as investing in the soon to be launched Exchange
Investment Fund unit trust, he said.  (South China Morning
Post  21-Aug-1999)


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

DAI-ICHI KANGYO BANK: Layoffs, cutbacks with merger
FUJI BANK:  Layoffs, cutbacks with merger

INDUSTRIAL BANK OF JAPAN: Layoffs, cutbacks with merger
-------------------------------------------------------
Three of Japan's biggest banks have confirmed they will
merge their businesses. Slashing staff by nearfly a fiftgh
and closing 150 branches to create the world's first bank
with assets exceeding US$1 trillion.

The lenders will form a holding company next year and plan
to merge their wholesale, retail, securities and investment
banking units by early 2002.  The tie-up between Dai-Ichi
Kangyo Bank (DKB), Fuji Bank and Industrial Bank of Japan
(IBJ) heralds the country's long-awaited entry into the era
of global bank mergers.

"Even as dynamic realignments take place across the globe
and across borders, Japanese banks had been left out in the
cold while we tried to resolve our bad loan problems," IBJ
president Masao Nishimura said.  "The three of us agreed
that we wanted to be the front-runner in revitalising
Japan's financial system."

The three banks will have combined assets of $1.3 trillion,
surpassing the world's biggest lender, Deutsche Bank, and
will be nearly twice as large as Citigroup.  Combined costs
would be cut by 100 billion yen (about HK$6.98 billion) and
operating profit would be targeted at one trillion yen, Mr
Nishimura said.  The three banks had a combined operating
profit of 583 billion yen last year.

Investors applauded yesterday's alliance announcement,
lifting all three banks' shares by their daily allowable
limits on the Tokyo Stock Exchange. IBJ's shares closed 100
yen higher at 1,084 yen, while DKB was up 100 at 1,009 and
Fuji Bank was up 90 at 1,043.  Setsuko Akiba, analyst at
Deutsche Bank Group, said the shares could rise to around
1,300 to 1,500 yen, with the new banking group expected to
grab a healthy 14 per cent share of bank lending to listed
Japanese firms.

Japan's financial regulators, who have pushed hard for
consolidation in the nation's battered banking industry,
were quick to welcome the banks' move and urged others to
follow suit.

"We would like to give [legal] support so that the alliance
is successful," Hakuo Yanagisawa, chairman of the Financial
Reconstruction Commission said.

The banks said the new group's size would enable it to make
effective investments and improve its ability to cope with
risk, while creating opportunities for more restructuring.
The three, who began discussing the deal in May, said they
would invest a combined 150 billion yen a year in enhancing
technological systems.  The banks aim to cut their combined
payroll by 6,000 to a total of 29,000 in the first five
years, while cutting the number of branches by 150.

Yukiko Ohara, a banking analyst at Morgan Stanley Japan,
said the figure for staff cuts was "only 100 more" than the
combined figures the three banks submitted to regulators in
March in return for bailout funds.  By adopting a holding
company structure, analysts said the banks can restructure
with a minimum of pain, as each bank will be able to
maintain its current wage structure for some time.

Shortly after the announcement, Moody's Investors Service
put the long-term credit ratings of the three banks on
review for a possible upgrade, while Standard & Poor's
withheld judgment, saying only that a rapid restructuring
would be essential to the success of the alliance.  (South
China Morning Post  21-Aug-1999)


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

DAEWOO GROUP: In technical default on debts
-------------------------------------------
Foreign bankers believe that Daewoo, South Korea's second-
largest conglomerate, is in technical default on some of
its overseas debt, but say they will not press for
bankruptcy proceedings against the company.

One of the bankers, speaking after their first meeting
yesterday with Daewoo to discuss its debt rescheduling,
said:  "We want to keep this out of the court system where
things can become messy. We want to keep control of the
process for now."

But the possibility remains that some will pursue legal
action over Daewoo's failure to make payments.  Natexis
Banques Populaires, a French bank, filed a suit in Hongkong
this week to recover US$10 million (S$16.8 million) in
unpaid loans to Daewoo.  The foreign banks have agreed to
form a nine-strong steering committee to liaise with the
group as it prepares to negotiate with individual banks on
the roll-over of short-term overseas debts of US$5.5
billion due this year.

Daewoo said the nine creditors are Arab Bank of the Middle
East, Tokyo-Mitsubishi and Dai-Ichi Kangyo of Japan, Chase
Manhattan and Citibank of the US, National Australia Bank,
UBS of Switzerland, HSBC Holdings of Britain and ABN Amro
of the Netherlands.   However, foreign bankers said the
make-up of the steering committee was still in the
formation stage. Daewoo, which agreed this week to
concentrate on car manufacturing after selling its other
businesses, presented information on its financial status
and restructuring plans, but failed to impress the bankers.

"We went there wanting to be optimistic, but left
disappointed. Daewoo requested a standstill on debt
payments, but nothing was offered in exchange. This will
not only undermine foreign confidence in Daewoo, but in
Korea Inc," said another foreign banker.

Foreign banks have demanded collateral for the roll-over of
Daewoo's overseas debt, which accounts for a fifth of its
total debt of US$50 billion.  Foreign banks hold US$7.7
billion of overseas debt, with the rest provided by the
overseas branches of Korean banks. (Financial Times;
Straits Times  20-Aug-1999)

DAEWOO GROUP: Steering committee representation not set
-------------------------------------------------------
The representation of the steering committee set up by
Daewoo Group's foreign creditors for rescheduling the
conglomerate's $9.9 billion overseas debt remains in
question.

The special panel needs to be approved by over 200 foreign
creditors of the Daewoo Group from all over the world so
that it can be a representative body, said one of the
members, adding that so far it has only got the support of
71 creditor banks.

"The number of foreign creditors who have approved the
authority of the panel only comes to the 71 who attended
the meeting held by the group in Seoul Wednesday. The rest
of the 130 creditors are perhaps not even aware of the
formation of the special body," the foreign banker told The
Korea Times.  "Until now the committee is still not a
representing body. It will take sometime for the panel to
get full support from all of Daewoo's creditor banks," he
added.

Over 150 officials from 71 foreign creditor banks attended
Wednesday's meeting at the Hilton Hotel's Convention Center
to discuss the rescheduling of the group's huge overseas
debts.  However, the rest of the 130 foreign creditor banks
did not come to the meeting.

Another problem within the committee is that only of the
three banks, out of the nine creditors appointed as panel
members, have decided to take part in committee activities.
Two creditor banks, Citibank and Union Bank of Switzerland
(UBS), have even left the committee, leaving the panel with
only seven-members.

"From what I understand, only Chase Manhattan Bank, ABN
AMRO Bank and National Australia Bank (NAB) decided to
remain on the panel. Citibank and UBS are excluded now. The
remaining four have not confirmed their participation at
the panel," he said.  "Before moving on with the debt
rescheduling, the formation of the committee has to be
decided. There is a long way to go until we can get the
body functioning," the foreign banker added.

Daewoo's foreign creditors formed a 9-member steering
committee Wednesday, following a discussion with the group
on the rescheduling of its $9.9 billion overseas debts.
The nine initial participants were Citibank and Chase
Manhattan Bank, representing the U.S. side, HSBC, ABN AMRO
Bank, and UBS for Europe, Tokyo-Mitsubishi Bank and Dai-
Ichi Kangyo Bank for Japan and NAB and Arab Bank
representing the rest.  (Korea Times  20-Aug-1999)


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

ROCK CHEMICAL INDUSTRIES: Proposes restructuring
------------------------------------------------
Rock Chemical Industries (M) Bhd (RCI) has proposed
divesting its business operations and assets to several of
its wholly-owned subsidiaries under an internal
restructuring exercise.

RCI said in a statement yesterday that it would dispose of
its white cement division to RCI Cement Sdn Bhd. The
transaction would be satisfied by the issuance of 6.99
million new ordinary RM1 shares in RCI Cement and
RM16.37mil cash.

The group's cement-based products division would also be
divested to RCI Concrete Products Sdn Bhd for RM2.2mil
cash, while its lime division would be disposed of to RCI
Lime Sdn Bhd for RM14.18mil cash.  RCI would also dispose
of its assets to RCI Marketing Sdn Bhd for RM518,645 cash,
and the assets of RCI Resources Sdn Bhd to RCI Lime. The
latter transaction would be satisfied by the issuance of
330,000 new RM1 ordinary shares in RCI Lime and RM109,002
cash.

Furthermore, RCI would dispose of its assets to RCI
Resources by the issuance of RM1 ordinary shares in RCI
Resources and RM439,192 cash.  The restructuring also
involves RCI's acquisition of an indirect subsidiary, RCI
Lime from RCI Resources, for RM2.85mil cash.  (Star Online
21-Aug-1999)

SOUTHERN STEEL BHD: Half-year loss less than expected
-----------------------------------------------------
Southern Steel Bhd, a 27 per cent associate of NatSteel
Ltd, managed to cut its group net loss by 55 per cent at
half-time despite weaker sales, thanks to its cost-cutting
measures and development of new products and new export
markets.

The Penang-based company posted a group net loss of 38.3
million Malaysian ringgit (S$16.9 million) in the first six
months ended June 30, against an RM85.6 million net loss in
the previous interim. Net loss per share was 13.6 sen,
against a loss per share of 30.3 sen in the 1998 interim.
Southern Steel's results were in line with market
expectations based on a poll of nine brokerages by Barra
Global Estimates, which showed a consensus net loss of
RM82.8 million for the full year.

Group turnover fell marginally by 8.3 per cent to RM381.8
million. Southern Steel said domestic demand remained
sluggish in the first half-year, with the construction
sector still registering negative growth.  The company
managed to trim operating loss by 50 per cent to RM40.4
million, while pre-tax loss was 55 per cent lower at RM39
million.

"The improved performance is achieved through realisation
of cost cutting implemented since last year and development
of new products and new export markets," Southern Steel
said in a review of its results.  The steel company was
also upbeat about the future. "For the second half, market
conditions are expected to pick up. Barring unforeseen
circumstances, group performance is expected to continue to
improve," it said.

Thinner margins, high financing charges and slumping
domestic sales following the regional crisis forced
Southern Steel into the red for the first time in a decade
last year. Yesterday's announcement did not declare any
dividends.  Its shares ended two sen lower at RM1.56
apiece. (Business Times  21-Aug-1999)


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

MEGAWORLD PROPERTIES: GSIS bills it for PhP378 million
------------------------------------------------------
The Government Service Insurance System (GSIS) stood pat on
its decision to bill Megaworld Properties and Holdings,
Inc. for 378 million Philippine pesos (US$9.57 million at
PhP39.499=US$1) in loans, interest and penalties it owes at
the end of May.

"That amount includes all the penalties and surcharges that
Megaworld accumulated over the months," GSIS general
manager Federico C. Pascual said in a television interview
yesterday morning.  "It's a straightforward mathematical
formula," he said. "For payment delay, the penalty rate is
5% compounded monthly. It's the same formula we use for
loans to our members."

In an earlier statement to the Philippine Stock Exchange
(PSE), Megaworld said the GSIS computation was erroneous
and insisted that its obligation to the pension fund
amounted to only PhP120 million ($3.038 million). Mr.
Pascual, however, said it was not the pension fund's
computation that gave rise to a large amount, but
Megaworld's delinquency in paying its obligations. The
PhP120 million Megaworld was referring to represents only
the loan principal.

"We will be very happy if we can get back our principal and
the interest portion of the loan," Mr. Pascual added. "Any
banker would be happy in that situation."

The GSIS chief said a proposal to condone Megaworld's
penalties and surcharges -- upon full and immediate payment
of the loan principal and interest -- was put forward by
one of the pension fund's departments and is now under
careful study by its executive committee. "We're studying
it, but we haven't acted on it yet."

Mr. Pascual pointed out he merely inherited the Megaworld
account from the previous GSIS administration, and that no
new loans were granted during his watch. "In fact, we've
stopped lending to developers, and we are now trying to
collect on these loans."

A source at the pension fund said Megaworld initiated debt
restructuring negotiations with GSIS as soon as the Mr.
Pascual was appointed general manager last year, and became
a delinquent account soon after that.  (Business World  20-
Aug-1999)

PHILIPPINE AIRLINES: Boeing again objects to rehab plan
-------------------------------------------------------
Following the recent appointment of a permanent
rehabilitation receiver, the skies seemed a little bit
clearer for debt-laden Philippine Airlines (PAL), Inc.
Yesterday, however, the airliner was again faced with
turbulence, as Boeing Co.reiterated its objection to the
rehabilitation plan and its earlier motion for the
Securities and Exchange Commission (SEC) to disclose basis
for approving the questioned plan.

The US aircraft manufacturer, to whom PAL owes $127
million, again said the Commission should justify its
decision by providing factual and legal basis for its move
to approve the plan.  Boeing asked the SEC to provide the
laws or rules applied in determining that a 55% vote of the
creditors is sufficient to approve a rehabilitation plan in
a suspension of payments proceedings.

Again, Boeing also asked the SEC to identify the creditors
which approved the plan, including the class and total
amount of debt held by each creditor and the conditions, if
any, attached to any approvals.  In its motion, Boeing
again asked the SEC to reconsider its earlier approval of
the rehabilitation plan and issue another order rejecting
the said plan and lifting the suspension of payments.

Boeing also said in the event that the SEC does not reverse
its earlier approval of the said plan, the US creditor
should be "declared to be not bound by the approved amended
plan or by the supporting order ... suspending all payments
to creditors.  The approval of the amended plan is
premature and has absolutely no basis in law," Boeing said
earlier.

The US company also said, contrary to the requirements of
the insolvency law or Republic Act No. 1956, the amended
plan was not subject to the vote of creditors, as claimed
by the SEC.

Meanwhile, the Delgado-owned Manila Integrated Airport
Services Corp. (Miascor) is still keen on bidding for the
maintenance and repair facility, as well as the ground
handling units of cash-strapped Philippine Airlines, Inc.
(PAL).  This was disclosed by Miascor chairman Jovino G.
Lorenzo, Jr. in a letter to the SEC dated August 16.
(Business World  20-Aug-1999; South China Morning Post,
Business Times  21-Aug-1999)


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

IPCO INTERNATIONAL: In major restructuring
------------------------------------------
Infrastructure contractor Ipco International is undergoing
a major restructuring exercise, the first since control of
the company passed to Indonesian stockbroker Purwadi
following a bitter struggle in May with former chief
executive Benety Chang and former deputy managing director
Anthony Aurol.

The company is now seeking to be a toll-road operator by
acquiring a 42.1 per cent interest valued at US$130 million
(S$217.8 million) in two roads in China.  Ipco will acquire
Spring Sun International (SSI), a British Virgin Islands
firm which owns the 42.1 per cent interest in Guandong
Qinlian Highway Development Company (GQH), a Sino-Singapore
joint venture which operates the two toll roads.  SSI is a
wholly-owned subsidiary of Springsun Highways Ltd which is
owned by the Singapore-based Chuang family -- Chuang Nai
Pin, Chuang Nai Hwei and Chuang Nai Teng.

In conjunction with the acquisition, Ipco is going through
a capital reduction exercise under which it will cut the
par value of its shares to 20 cents from $1.70 by
cancelling part of its capital which is no longer
represented by available assets. However, Ipco said the
capital reduction is not dependent on the acquisition and
will be carried out anyway.

The Chuangs will be paid initially with 650 million new
Ipco shares of 20 cents par value, but valued for the
transaction at 20 US cents each. Ipco shares closed
yesterday at 43 US cents, up 7.5 US cents.  This will mean
that the vendors would end up with just over 90 per cent of
Ipco's enlarged capital of 721 million shares but the
Securities Industry Council has granted them a waiver from
making a general offer provided a majority of independent
shareholders also waive it at a general meeting of
shareholders.

Under a separate sales and purchase agreement between the
Chuangs and Mr Purwadi, the Chuangs will sell their shares
to the Indonesian businessman in six tranches over two
years for US$143 million after imputing an interest cost.
Mr Purwadi, who currently is said to have just over 5 per
cent of Ipco, will in turn place out a portion of the Ipco
shares through stockbrokers to independent parties so that
he ends up with no more than 25 per cent of Ipco at any
stage of his exercise. There was no indication on how he
was going to finance his purchases.

The toll roads comprise a 215-km four-lane National Class A
highway from Qingyuan in north Guangdong to Hunan and an
older 253-km two-lane highway also from Qingyuan to Hunan
but serving different towns and cities.  GQH has exclusive
rights to collect tolls from five collection stations along
the new highway and four stations along the older highway
for 33 years from 1994, and to provide related services to
road users.

Ipco, which has been reporting losses for the past three
years, including a net loss of $41 million for the
financial year ended April 30 1999, said the acquisition
would offer it an opportunity to expand into a related
business area and provide a foothold to explore future
opportunities in toll road projects in China and the
region.

"The acquisition is also viewed as an opportunity to
acquire cash-generating assets that will provide the group
with a recurring stream of earnings," Ipco added, without
providing any data on the financials of either SSI or GQH.
(Business Times  21-Aug-1999)


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

KRUNG THAI BANK: Chairman prepared to step down
-----------------------------------------------
Mechai Viravaidya, chairman of Krung Thai Bank, says he is
prepared to step down if asked by the government.  "I am
ready to go at any time. My tenure is up to the major
shareholders," he said yesterday.

Krung Thai Bank is controlled by the Finance Ministry and
the central bank's Financial Institutions Development Fund,
with ordinary investors holding just 8%.

"If I am an obstacle to the process of change, regardless
of good intentions, then I will remove myself," Mr Mechai
said. "The bank is more important than any one person."

A political furore has erupted since a confidential report
by PricewaterhouseCoopers was leaked to a Senate banking
committee.  The report details widespread weaknesses in the
bank's internal credit controls and management information
systems, and has prompted calls from opposition political
parties for an independent investigation.  Mr Mechai denied
that he was the source of the leak.

There were reports that Mr Mechai had handed over the
"confidential reports" written by the consultants to
Chirayuth Vasurat, chairman of the Senate banking
committee, at a golf course. However, Mr Mechai issued a
denial yesterday, saying he had never met Mr Chirayuth and
had never gone to Rajapruek golf course, their reported
venue.

Yesterday morning, Mr Mechai was summoned by Prime Minister
Chuan Leekpai for a meeting at Government House. Mr Mechai
said the prime minister had offered him "words of
encouragement"-a claim Mr Chuan denied in a Radio Thailand
interview last night.  Later, Mr Mechai met Finance
Minister Tarrin Nimmanhaeminda, who said that improving
management efficiency and restructuring the bank's problem
loans remained key priorities.

Mr Mechai, a noted social development activist who also
serves as chairman of the Telephone Organisation of
Thailand, said he had no intention of resigning from Krung
Thai because of the controversy.  "I have asked myself
whether I should leave. The answer is, not yet."

The government, now holding a 92% stake in Krung Thai,
plans to sell a 20% stake to a strategic partner by June.
On Thursday next week, directors will meet to vote on
whether to extend Mr Mechai's annual term as chairman.
Mr Mechai said that the consultants were asked to study the
bank's asset quality, information and credit systems to
help in negotiating with regulators on its recapitalisation
needs.

The credit review focused on 13 key credit elements, such
as the purpose of the loan, collateral, security
documentation, monitoring and financial analysis procedures
used by the bank.  Mr Mechai said five reports were
submitted to the Krung Thai board in mid-June: individual
reports on Bangkok Bank of Commerce, First Bangkok City
Bank, Krung Thai Bank; a detailed overview and an executive
summary.

He said the auditing firm had been asked to expand its
inquiry into lending to small and medium-sized borrowers as
well, in order to provide a broader and more in-depth
examination of the bank's weaknesses.

"The first examination was just a preliminary diagnosis,"
he said, adding the second audit was expected to be
completed by October.

Mr Mechai said the investigation was not a "witch-hunt',
but aimed at helping identify the bank's weaknesses so that
changes could be made.

"Profitability, transparency, efficiency. That is what we
hope to bring," he said. "My job is as a reformer, to
change the culture, the style at the bank."In Mr Mechai's
view, the damage to the assets of Krung Thai bank had its
roots in three areas.

First were "errors of judgment", whereby staff extended
loans with inadequate understanding of credit risks.
Second were "errors of processing", involving cases where
officers "cut corners" in lending procedures, Mr Mechai
said. While not necessarily criminal, such cases could be
treated as negligence by executives.

Third were cases of corruption. Overall, preliminary
results showed that most of the damage to the bank's loan
portfolio was caused by errors either in judgement or
processing.  Mr Mechai said the bank's 18,000 staff were
working to help deal with the problems.  He noted that non-
performing loans had increased by only one percentage point
in the second quarter.

At the end of June, Krung Thai said non-performing loans
totalled 393 billion baht, or 59.3% of total outstanding
loans.  Shares of Krung Thai yesterday closed at 13 baht,
unchanged, on turnover worth 201.71 million baht.
The central bank yesterday also completed Krung Thai's
recapitalisation by swapping debt worth 108 billion baht
for new equity.

Regulators said they had completed preliminary findings in
their investigation of how the auditors' report was leaked,
a potential violation of local banking regulations.
Chakthip Nitibhon, assistant central bank governor, said a
report would be submitted today to M.R. Chatumongol
Sonakul, central bank governor.  (Bangkok Post  20-Aug-
1999)

NAKORNTHAI STRIP MILL: Underwriters sued for more than $33M
-----------------------------------------------------------
Investment funds that purchased almost $43 million of notes
in a steel mill on the outskirts of Bangkok are suing the
underwriters alleging they misled investors about the
mills' status and capabilities.  A group of funds managed
by Farallon Capital Management and Oaktree Capital
Management are asking for $33 million and other damages for
their investment in senior notes, senior subordinated notes
and debentures of the Nakornthai Strip Mill, a mini-mill
that has been the subject of other lawsuits by US
investors.

Underwriters and investment banks including KeyCorp's
McDonald Investments, Gleacher, Natwest Group Holdings,
PaineWebber and ECT Securities are named as defendants.
Steel Dynamics, which managed the mill briefly, also is
being sued in the filing made in California Superior Court
in Los Angeles.

The suit alleges the underwriters and others misled
investors in selling $452.5 million of debt in March 1993.
The filing claims the defendants misrepresented the plant's
construction status, the quality of its design and steel
produced, and availability of working capital.

The investors claim they learned of the mill's problems in
October 1993 after most of the mill's management team had
been fired. The plaintiffs at that time were told the plant
construction was over budget and faced a myriad of
problems.  The mill was subsequently shut down. Sawasdi
Horrungruang, a major investor in the project, said this
year it would take about $100 million to restart it.
(Bloomberg; Business Day  20-Aug-1999)

ONE HOLDING PLC: Liabilities decline,debt negots successful
-----------------------------------------------------------
One Holding PlcC reports that its outstanding liabilities
have declined from Bt6.99 billion at the end of March to
Bt5.81 billion at the end of June because it and its
affiliates have been successful in negotiating with
creditors to buy back debentures, convertible debentures
and bills of exchange worth Bt1.09 billion.  Talks with
creditors to restructure the remaining debt are on the way.
(The Nation  21-Aug-1999)

SAWASDI HORRUNGRUANG: Vow to fight on "against all odds"
--------------------------------------------------------
Steel tycoon Sawasdi Horrungruang said yesterday he would
continue to fight for the survival of his steel empire
despite an increasing number of legal lawsuits against him
and his companies, with the last one coming yesterday from
the bond holders of Nakornthai Strip Mill Plc.

Bloomberg reported from Los Angeles that investment funds
that have purchased almost US$43-million worth of a total
of US$425.5 million bonds issued by NSM, the flagship steel
company in Sawasdi's empire, in March 1998, are suing the
underwriters, alleging they misled investors about the
mill's financial status.

They charged that the underwriters had handed out wrong
information on the plant's construction status, the quality
of design and steel, and availability of working capital.
Although the latest legal case had come just prior to the
NSM debt restructuring term-sheets proposition issue,
scheduled for next week, Sawasdi maintained his tough
stance saying he would go ahead to convince his creditors
and bond-holders to approve the restructuring plan.

"If they don't accept, I will just initiate a liquidation
procedure. I'm now talking with the bond holders every
Tuesday," said Sawasdi in a telephone interview with The
Nation.

NSM owes US$800 million to bank and bond creditors,
including US$354-million worth of debts to Thai banks.
Early this week, Thai Farmers Bank filed a lawsuit against
Sawasdi over his personal loans worth Bt75.6 million. Prior
to this, Sawasdi had also been sued by Merrill Lynch Phatra
Securities and Thai Military Bank.

Bloomberg reported that a group of funds, managed by
Farallon Capital Management and Oaktree Capital Management,
are seeking US$33 million in compensation and other damages
for their investment in senior notes, senior subordinated
notes and debentures of the NSM, a mini-mill that has been
the subject of other lawsuits by US investors.

Underwriters and investment banks including KeyCorp's
McDonald Investments Inc., Gleacher and Co Inc, Natwest
Group Holdings Corp, PaineWebber Inc and ECT Securities are
named as defendants. Steel Dynamics Inc, which managed the
mill briefly, also is being sued in a filing made in
California Superior Court in Los Angeles.

Sawasdi said the debt issuances had been made in accordance
with the strict regulations of the US financial market, and
the process had involved scrutiny by many auditors
including Earnest & Young.

"They should have realised that the high-yield bonds were
coming with a high risk. Maybe they have not read the
prospectus," said Sawasdi.

Observers said NSM had succeeded in issuing the debts at
that time, with the Thai economy still in a nose dive,
simply because it had been known that the big-time
investor, George Soros, had also purchased the notes. They
also trusted Steel Dynamics which had come briefly to
manage the company.

The investors claim they learned of the mill's problems in
October 1998, after most of the mill's management team had
been fired. The plaintiffs at that time were told that the
plant construction was over the budget and faced a myriad
of problems.  The mill was subsequently shut down because
bond holders had suspended the disbursement of the funding,
said Sawasdi.

Sawasdi, who is currently the chairman of CEO and NSM, said
the company would need US$10 million to restart the US$1-
billion hot-rolled steel plant, but a US$100 million budget
would be needed to complete the integrated steel production
project.  According to Sawasdi, only last month the
investment funds joined him to discuss the NSM debt
restructuring in the presence of executive officials of the
Bank of Thailand. He said that the talks had been conducted
in a good manner.  (The Nation  21-Aug-1999)

SHIN SATELLITE: Bond issue to reduce foreign debt awaits ok
-----------------------------------------------------------
Shin Satellite Plc says its three-billion-baht domestic
bond issue will be settled in the next few months. The
firm's unsecured bond issue is awaiting a credit rating and
an approval by the Securities and Exchange Commission, said
the company's executive chairman Dumrong Kasemset.

Dr Dumrong said the issue of a three-billion-baht bond
combined with a recent 1.75-billion-baht capital increase
will enable SSA to retire its foreign debt of US$130
million.  Part of the money received from bond issues will
be spent on its business expansion in the future, he said.
The move is to adjust the company's financial portfolio to
local currency in order to reduce foreign exchange risk and
halve its 2:1 debt to equity ratio.

By November, SSA expects to issue bonds in the domestic
market, he said.  Earlier, CS Communication Co-the Internet
service provider of Shin Satellite-raised its registered
capital to 600 million baht from 10 million baht.  SSA lent
money through CS, in a debt for equity deal.  The
Communications Authority of Thailand, a joint venture with
CS, is planning to inject 600 million baht into CS
Communication as well, and is awaiting approval from CAT's
board.

The capital raised will reduce its 800 million baht foreign
debt.  Dr Dumrong said CS Communication is introducing an
Internet service for overseas operators, which is expected
to boost revenue by 10% in the next year.  The company is
talking with several business partners-such as United of
Emirates and the ISPs in Nepal, Iran, Burma, Vietnam, and
Pakistan-to use the services.

CS also plans to launch a new high-speed satellite internet
service in October to focus on corporate customers.  CS
Communication is the only Thai ISP providing a satellite
Internet service nationwide. The company uses SSA's Thaicom
1 satellite.

Shin Satellite reported a net profit of 206 million baht in
the second quarter this year, up 28% from the same period
last year.  Of the total revenue, the company earned 94
million baht profit from operations, with the remaining 112
million baht gained from forex exchange.  Dr Dumrong said
60% of total revenue was contributed from telecom
businesses with the remaining 40% from broadcasting. He
added that 35-40% of total revenue was generated from
overseas, compared with 10% earned abroad in 1996.
Currently the company's C-band transponder has an 80%
utilisation, but the KU-band transponder is currently
utilised only 32%.

It is expected to take longer to reach its maximum
utilisation depending on increased competition, for
example, the opening up of the satellite market in India
and China.  In preparation for the liberalisation, the firm
is talking with several potential strategic partners.
The company will adopt a long term business strategy,
looking at those who can contribute technology support,
marketing network, customers and money, Dr. Dumrong said.
(Bangkok Post  20-Aug-1999)

THAI TELEPHONE: Approval of rehab plan expected in 3 mos.
---------------------------------------------------------
Thai Telephone & Communication (TT&T) expects creditors to
approve its 38 billion-baht debt restructuring plan in
November before taking another two to three months to
complete the plan, according to the company Executive Vice
President for Finance and Accounting Witit Sujjapong.

The debt restructuring negotiation between TT&T and its 45
creditors began in the middle of last year involving 21
billion baht of domestic debts and $418 million of offshore
loans.  The plan is expected to include interest reduction,
payment extension, and conversion of debts to equity.

As for Shinawatra's plan to acquire a stake in TT&T, the
company's President Thongchat Hongladaromp said the deal
has not reached a conclusion and the company is now in a
process of exchanging information and ideas.

"The negotiation should not be long. From now until the
next two months, the talks will give a clearer picture of
the deal," he said.
However, TT&T would not be much affected if the negotiation
failed as TT&T is looking for other partners.  (Business
Day  21-Aug-1999)


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