/raid1/www/Hosts/bankrupt/TCRAP_Public/990902.MBX   T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

    Thursday, September 2, 1999, Vol. 2, No. 171

                            Headlines


* C H I N A  &  H O N G  K O N G *

CHAIFA: Posts annual loss
CHINA UNITED HOLDINGS: Posts annual loss
HWA KAY THAI HOLDINGS: Posts second consecutive annual loss
LOGIC INT'L HOLDINGS: Posts second consecutive annual loss
LUEN FAT HONG INT'L HOLDINGS: Posts annual loss
PLAYMATES TOYS HOLDINGS: Posts annual loss
ROCKAPETTA HOLDINGS: Posts second consecutive annual loss
SEAPOWER GROUP: Posts annual loss
SIU-FUNG CERAMICS: Rescuing tycoon wrangling with creditors


* I N D O N E S I A *

PT BANK BALI: Posts staggering first-half loss
PT BANK NIAGA: Posts staggering first-half loss
PT FAJAR SURYA WISESA TBK: October for debt-rehab plan


* K O R E A *

DAEWOO GROUP: Business, export networks falling apart
DAEWOO GROUP: Bailout funds to be channeled to it
DAEWOO SECURITIES: Creditors take over cash cow
KOREA LIFE: Pancom flip-floping on takover
SAMSUNG MOTORS: In talks with 2 bidders
SEOUL BANK: To receive public funds, foreign managers


* M A L A Y S I A *

MALAYSIAN PLANTATIONS BHD: To reorganize after debt rehab


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

FORTUNE TOBACCO: Court stops tax evasion case again
MONDRAGON LEISURE AND RESORTS: Asks for 7-day moratorium
PHILIPPINE AIRLINES: Eximbank withdraws court action
UNIWIDE GROUP: Interest being shown in assets


* S I N G A P O R E *

GOLDTRON LTD.: Viability questioned
IPC CORP.: Court approves debt plan
LIM KAH NGAM: To reduce par value of shares
VAN DER HORST: Trims its debts


* T H A I L A N D *

BANK OF ASIA: Posts first-half loss
BANKTHAI: Posts loss
DBS THAI DANU BANK: Posts first-half loss
KRUNG THAI BANK: Organizational shake-up ahead
KRUNG THAI BANK: Special audit ahead
KRUNG THAI BANK: Posts first-half loss
PADAENG INDUSTRIES: Austrailian company to buy stake
RADANASIN BANK: Posts loss
SIAM COMMERCIAL BANK: Posts first-half loss
SIAM STEEL INTERNATIONAL: Posts annual loss
THAI FARMERS BANK: No Phatra Finance resolution yet
THAI OLEFINS CO.: Expecting 500 million baht loss this year
THAI OLEFINS CO.: Creditors agree to debt rollover
THAI TEL. & TEL.: Shin Corp ends stake talks
WATTACHAK PLC: Sued for payment of listing fee


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

CHAIFA: Posts annual loss
-------------------------
Chaifa, the Playboy-brand products manufacturer and
distributor, recorded larger-than-expected net losses of
$54.9M for the financial year ended March 31.  

The consensus forecast of analysts, as recorded in Barra's
The Estimates Directory, was for a loss of only $10M.  It
recorded a turnover of $145.9M for the year, representing a
51.7% decrease from the same period of last year.  It also
suffered from an exceptional loss of $45.7M.  It recorded
an operating loss of $9M for the year compared.

CHINA UNITED HOLDINGS: Posts annual loss
----------------------------------------
Building material-maker and property developer China United
Holdings suffered a net loss of $676.92M in the year to
March 31, mostly due to an exceptional loss of $459.1M on
provisions.  No dividend was given.

HWA KAY THAI HOLDINGS: Posts second consecutive annual loss
-----------------------------------------------------------
Diversified firm Hwa Kay Thai Holdings saw its net loss
improve to $66.68M in the year ended March 31 from $2.51B a
year earlier.  A non-recurring exceptional loss of $38.41M
compared with a loss of $1.79B previously.  Operating
losses dwindled to $17.31M from $104.96M.

LOGIC INT'L HOLDINGS: Posts second consecutive annual loss
----------------------------------------------------------
Office-furniture maker Logic International Holdings' net
loss widened to $109.18M for the year ended March 31 from
$76.95M a year earlier.  Turnover fell 31.04% to $203.01M.  
Loss per share was 18.6 cents, up from 17.9 cents.  No
dividend was recommeded.

LUEN FAT HONG INT'L HOLDINGS: Posts annual loss
-----------------------------------------------
Luen Fat Hong International Holdings has lost $114.04M in
the year ended March 31 against a profit of $22.54M a year
ago, due to an exceptional loss of $94.32M.  No final
dividend was given.

PLAYMATES TOYS HOLDINGS: Posts annual loss
------------------------------------------
Playmates Toys Holdings has slumped to a net loss of
$34.72M in the first six months compared with a net profit
of $8.4M a year ago.  Turnover advanced 16.36% to $299.65M,
exchange data showed.  No interim dividend will be paid.

ROCKAPETTA HOLDINGS: Posts second consecutive annual loss
---------------------------------------------------------
Toy-manufacturer Rockapetta Holdings has reported an
attributable loss of $24.53M for the year ended March 31,
up from a loss of $6.74M previously.  No dividend will be
paid for the second consecutive year.  Turnover rose 19.26%
to $153.65M.

SEAPOWER GROUP: Posts annual loss
---------------------------------
Seapower Group of companies plunged into the red in the
year ended March 31.  Seapower International Holdings
recorded a loss of $814.12M while subsidiary Seapower
Resources International lost $974.89M.

SIU-FUNG CERAMICS: Rescuing tycoon wrangling with creditors
-----------------------------------------------------------
Garment tycoon Charles Yeung Chun-kam is expecting tough
negotiations with mainland creditors on his rescue bid for
insolvent Siu-Fung Ceramics Holdings.

Speaking after the annual shareholders meeting of his
listed arm Glorious Sun Enterprises, Mr Yeung said almost
all 19 Hong Kong banks had accepted his rescue plan for
Siu-Fung.

"Only two banks - one Japan-based and one Europe-based -
haven't accepted the plan," he said.

Mr Yeung said the two disgruntled banks held less than 10
per cent combined of Siu-Fung's total debt of $2.2 billion.
Under Mr Yeung's restructuring plan proposed in early July,
the $2.2 billion debt would have been cleared by a $70
million cash payment.  But after negotiations with the
creditors, Mr Yeung last month agreed to increase his
offer. Under the revised plan, creditors would receive a 3
per cent stake in the company in addition to the cash
payment.

"A further increase is not likely," Mr Yeung said.

He said the arrangement with Hong Kong banks could be
finalised within a month.  However, the negotiations with
mainland creditors might drag on, he said.

"The negotiations will be even tougher [than with the Hong
Kong ones]," Mr Yeung predicted.

Siu-Fung chairman Siegfried Lee Siu-fung has said mainland
creditors rushed to claim their loans after a liquidation
petition was filed in May by HSBC, the company's largest
creditor.  The petition had accelerated the outflow of the
company's mainland assets.  Analysts say the company's
deteriorating net-asset value was the main reason the
previous white knight, Kumagai Gumi (Hong Kong), withdrew
its rescue bid.  Mr Yeung said he had yet to contact any
mainland creditors, but that Mr Lee "had done something to
address creditor concerns".

He also said no due diligence would be carried out on the
company's main assets - 16 mainland factories - until the
rescue was cleared by the local creditors.  (South China
Morning Post  01-Sep-1999)

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

PT BANK BALI: Posts staggering first-half loss
PT BANK NIAGA: Posts staggering first-half loss
-----------------------------------------------
PT Bank Bali, which is being taken over by Britain's
Standard Chartered Bank, and PT Bank Niaga both posted
trillion-rupiah losses in the first half of 1999, dragged
down by losses in their basic lending business.

Bank Bali posted a loss of 1.56 trillion rupiah, or 2,323
rupiah a share, compared to a 68 billion rupiah profit in
the first half of 1998.  The bank's interest income was
more than halved to 795 billion rupiah from, 1.7 trillion
rupiah, while interest costs fell only 26 percent to 1.09
trillion rupiah from 1.48 trillion rupiah.  That meant Bank
Bali earned less on its lending than it paid out on
deposits, a negative interest spread that chewed away at
its bottom line.  Bank Niaga is also suffering from the
same problem. (Business Day  01-Sep-1999)

PT FAJAR SURYA WISESA TBK: October for debt-rehab plan
------------------------------------------------------
Wrapping paper producer PT Fajar Surya Wisesa Tbk.
(JSX:FSW) said it hopes to complete negotiating its debt
restructuring plan with its creditors in October this year.

An official of the company did not say the amount of its
remaining debt to be restructured, but last year it was
reported to seek to restructure a total debt of US$ 265
million with creditor banks and bond holders.  The company
has appointed J.P. Morgan Securities Asia as its financial
advisor in the restructuring plan.

In the first six months of this year, FSW posted a net
profit of Rp343 billion (US$ 49 million), as against a net
loss of Rp806 billion in the same period last year. In the
first half of this year, FSW sales value of kraft liner and
corrugated medium paper rose by 16% to Rp528 billion from
Rp455 billion in the same period last year.  The company
management its sales rose in volume by 17% from 171,705
tons to 234,945 tons.  (Asia Pulse  31-Aug-1999)


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

DAEWOO GROUP: Business, export networks falling apart
-----------------------------------------------------
Daewoo Group companies' business infrastructure is rapidly
collapsing amid mounting jitters over the conglomerate's
crisis, casting a pall over the recovering economy,
analysts warned yesterday.

Among the 25 affiliates, Daewoo Corp. appears to be hit the
hardest in the wake of creditors' recent decision to break
up Korea's No.2 chaebol, said the analysts.  Indeed, a
growing number of foreign buyers are deserting Daewoo
Corp., while local banks are increasingly refusing to
extend trade financing, they noted.

In 1998, Daewoo Corp. registered the largest export volume
among local general trading companies at $17.6 billion,
accounting for 13 percent of Korea's overseas shipments.
The collapse of Daewoo's overseas export networks is feared
to cut this year's exports by $3 billion, dealing a blow to
the government's annual trade surplus target of $25
billion, the analysts estimate. The Korea International
Trade Association (KITA) even put the expected export
losses from the Daewoo crisis at up to $5 billion,
depending on support from local banks.

Similarly, flagship Daewoo Motor Co. is experiencing
growing difficulties in its production and exports due to
the worsening finances at its parts suppliers, sources say.
With the fate of Daewoo Motor hanging in the balance, many
parts suppliers, which failed to get banks to buy the
automaker-issued commodity bills, are now starting to ask
for cash payments.

In particular, large-sized and foreign parts suppliers are
demanding cash payments and other sticky conditions,
pressing the already troubled Daewoo Motor harder to the
wall, the sources say.

"Without injection of new capital from banks and more
cooperation from parts suppliers, Daewoo Motor's attempts
to expand output as a way of exporting its way out of the
crisis will end in failure," said a company executive.

Adding further to Daewoo's woes, meanwhile, large numbers
of talented employees at Daewoo Corp. and other blue-chip
subsidiaries are said to be leaving their companies, posing
another threat to the restructuring efforts. Creditors'
control of the groupwide restructuring heightened the
possibility of mass layoffs, forcing company employees to
seriously ponder their futures.

The analysts speculated that the growing anxieties among
Daewoo's business partners, buyers, subcontractors and even
employees are attributable to the creditors' ambiguous
stance on the disposal of Daewoo companies.

In the case of Daewoo Corp., for instance, creditors have
yet to determine whether its general trading company (GTC)
status will be maintained or reduced to a mere export
window for Daewoo Motor.  Early this year, Daewoo Corp. set
its annual export goal at $18 billion, but attained just
$8.7 billion in the first seven months. Since the middle of
August, the firm's overseas shipments have been virtually
suspended.

Indeed, reports of foreign buyers severing ties with Daewoo
Corp. abounded in the local press lately. A Taiwanese firm,
which annually imports about $20 million worth of aluminum
products from Daewoo, recently changed its buying line to
Indonesia. A Russian chemicals firm, a business partner of
eight years, also cancelled its August order, while a U.S.
retailer delivered an intent to halt transactions.

"Over the past 32 years, Daewoo Corp. has faithfully built
worldwide export networks linking 121 countries.  
Furthermore, 44 percent of the firm's exports in 1998 came
from non-Daewoo companies," said a KITA executive, calling
for immediate countermeasures at the government level.
(Korea Herald  02-Sep-1999)

DAEWOO GROUP: Bailout funds to be channeled to it
--------------------------------------------------
The Bank of Korea (BOK) has disclosed several moves it
plans to make to channel bail-out funds into the ailing
Daewoo business group.

The central bank announced Wednesday that it plans to
extend for one extra year the maturity of W1 trillion in
loans to Korea First Bank, the largest creditor bank of the
group. The BOK said the rollover would help the commercial
bank to tide over the shortage of short-term fund
facilities that Daewoo subsidiaries have been depending on
to meet their payment obligation to suppliers.

Another measure taken by the central bank will be to pump
short-term funds ranging from W500 billion to W2 trillion
into commercial banks against the possible en masse
redemption of Daewoo-issued bonds and commercial papers.
(Digital ChosunIlbo  01-Sep-1999)

DAEWOO SECURITIES: Creditors take over cash cow
-----------------------------------------------
South Korean creditor banks have taken over the Daewoo
Group's cash cow, Daewoo Securities, in the first concrete
step toward breaking up the debt-ridden conglomerate,
officials said yesterday.

Six major creditor banks, led by Korea First Bank (KFB)
signed a contract to take over Daewoo Group's 14.87 percent
controlling stake in the profitable unit of the crippled
group, KFB and Daewoo said.

"We signed an agreement with Daewoo on Monday evening under
which creditors will take over the management of Daewoo
Securities," a KFB official said.

The unit, once a vital cash pipeline which kept South
Korea's sprawling second-largest business group afloat, was
taken over by creditors as Seoul pushes to disband Daewoo
and sell off units to avoid a spectacular bankruptcy.

"In the future, the six banks will sell Daewoo Securities
off to a third company after valuing its assets and
liabilities," the KFB official added.

The move to sever the cash pipeline came a day after
creditors banned subsidiaries of the group from bailing
each other out in a move to speed the break-up of the giant
which is teetering on the brink of collapse.  Daewoo and
KFB said a 1.51 percent stake in Daewoo Securities held by
group chairman Kim Woo-Choong was excluded from the deal,
at Daewoo's request.

The stake, 936,669 shares, will instead be used to pay down
debt of Daewoo Motors - which the group may retain as it
becomes an auto firm - through subscription to a rights
offering by the auto unit, it said.  Yonhap News Agency
quoted creditors as saying a sale price for Daewoo
Securities will be decided after due diligence, and they
plan to replace the brokerage's current management.

Under an August 16 agreement signed with its domestic
creditors, Daewoo agreed to hand over the securities firm
to creditors by the end of September, the first step in its
dismantling.  Creditors decided to take over the unit to
avoid disruption to the markets, already jittery over the
fate of the industrial giant.

Daewoo, in return for a $3.3 billion loan lifeline and the
rollover of a further $5.8 billion in existing loans,
agreed to spin off units and sell them in order to bring
its massive $51 billion debt to heel.  Under the plan, it
will shed all but six of its current 25 units by the end of
the year, while creditors last week announced a debt
rehabilitation plan for 12 of its sickest subsidiaries.

Meanwhile Daewoo Securities said it was in talks to sell an
80 percent stake in wholly-owned unit Daewoo Capital
Management to US mutual fund company Scudder Kemper
Investments for five billion won ($4.1 million).

"Our talks are at a final stage, with Scudder Kemper's due
diligence in Daewoo Capital almost finished," a company
spokesman said.

After the sale of the stake, Daewoo Capital will become a
joint venture with capital of 10 billion won up from the
current level of five billion won, the spokesman said.
However, South Korea's chief financial watchdog Lee Hun-Jai
conceded Monday that unraveling the giant would take time
given the fact that its debts and assets across the globe
and yet to be fully evaluated.  (Business Day  01-Sep-1999)

KOREA LIFE: Pancom flip-floping on takover
------------------------------------------
American investment firm Panacom has been prompting much
confusion with its constant pushing back of the payment
date for its investment into local firm Korea Life
Insurance.

In a press release issued Wednesday, the U.S. firm
announced that it would make a US$42.9 million capital
investment into Korea Life as scheduled and an additional
US$250 million investment within 60 days following due
diligence. Panacom also said its plan to invest in Korea
Life would see it injecting a total of US$1.9 billion in
funds into the ailing life insurance firm within a one-year
period.

Although Panacom had originally planned to make the US$42.9
million capital injection Monday, it postponed making the
payment by one day. On Tuesday, however, the firm reneged
on its commitment, asking for two more days.

Once the US$42.9 million is deposited, Panacom will hold a
62% stake Korea Life, turning it into the firm's
controlling shareholder and effectively making it
impossible for the government to implement its plan to
normalize the ailing life insurance firm through an
injection of public funds.

Korea Life had recently came under government control as
its liabilities were found to exceeded its assets by W2.9
trillion, and if Panacom presses on with its capital
investment plan, the government may demand that it
eliminate the deficit.

Should the U.S. firm prove unable to pay off Korea Life's
debts, the government could shut down the life insurer and
proceed with its plan to takeover the firm and normalize
its operations before selling it off again.  

One high-ranking official at the Financial Supervisory
Commission (FSC) said that Panacom's financial strength
remains unconfirmed, but he believes that the U.S. firm
will not proceed with its mammoth investment plan, which
runs counter to the wishes of the Korean government.  
(Digital ChosunIlbo  01-Sep-1999)

SAMSUNG MOTORS: In talks with 2 bidders
---------------------------------------
The Samsung Group is now in talks with two foreign
automakers in a bid to sell off the troubled Samsung
Motors, a top group executive said yesterday.

Lee Hak-soo, head of the group's restructuring task force,
told reporters that responses from the aspiring foreign
buyers of Samsung Motors' Pusan plant are positive so far.

"Creditors have taken charge of the disposal of Samsung
Motors. But the Samsung Group will try its best to speed up
the automaker's overseas sell-off in a bid to help revive
the moribund economy of Pusan," said Lee.

He added that the biggest concern on the part of foreign
firms is Seoul's policy to restructure the local auto
industry into two players.  The foreign carmakers want to
use Samsung Motors and its factory as a base for bigger
access to the Asian market, Lee said. General Motors, for
the same reason, is now negotiating with Daewoo Motor, the
country's second-largest automaker, on a possible takeover.

Meanwhile, Lee stressed that Samsung will lower its
groupwide debt-to-equity ratio to 150 percent by the end of
this year and then 100 percent by the end of 2000.  He
brushed aside rumors over Samsung hoping to acquire state-
invested Korea Heavy Industries and Construction (HANJUNG)
and Hanaro Telecom. Samsung Securities has no plans to take
over Daewoo Securities, currently up for sale after
Daewoo's creditors took the brokerage house over. (Korea
Herald  02-Sep-1999)

SEOUL BANK: To receive public funds, foreign managers
-----------------------------------------------------
South Korea will inject public funds into Seoul Bank (KSE:
02860) and bring in an international financier to help
normalize operations at the ailing bank.

The Financial Supervisory Commission (FSC) and HongKong and
Shanghai Banking Corp. (HSBC) announced separately Tuesday
that they were ending talks over the sale of Seoul Bank.

"We continued negotiations even after we passed the May
deadline that was stipulated in the memorandum signed in
February," FSC official Nam Sang-deuk said. "But we agreed
to end the talks as we failed to narrow differences over
the terms of sale."

The government will recruit a foreign CEO for Seoul Bank
and leave management under the new head, he added. The new
management will be entrusted with full control over the
bank.  Nam also said injection of public funds will take
place in the near future to save the bank from heavy
default pressure.

The government will also gradually sell its stake in Seoul
Bank to foreign buyers.  The selloffs of Seoul and Korea
First Banks were the centerpiece of the bank reform plan
agreed with the International Monetary Fund (IMF) in return
for a US$ 58 billion bailout in December 1997. Neither
transaction succeeded.  (Asia Pulse  31-Aug-1999)


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

MALAYSIAN PLANTATIONS BHD: To reorganize after debt rehab
---------------------------------------------------------
Plantations Bhd (MPlant) plans to concentrate primarilly on
banking after its restructure and acquisition of a majority
stake in Multi-Purpose Bank Bhd, which has been identified
as one of the six anchor banks under the consolidation
exercise of the banking industry.  Bank Negara had granted
the bank approval to commence negotiations to take over 11
financial institutions,

"If the proposed restructuring exercise materialises before
the turn of the century, the MPlant group will then be
concentrating on banking, the sector which the group
expects to benefit from the increase in economic activity
in the country," the MPlant board of directors said in the
company's latest annual report.

The board said MPlant's underlying fundamentals should be
strengthened as the group proforma net tangible assets was
expected to rise to 54 sen per share from 35 sen per share
principally from the issuance of 98 million new MPlant
shares to partly finance the proposed MPBank acquisition.
For the year ended March 31, 1999, the group suffered a
loss before tax and exceptional items of RM46.43mil against
RM31.26mil in 1998.  (Star Online  01-Sep-1999)


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

FORTUNE TOBACCO: Court stops tax evasion case again
---------------------------------------------------
The Marikina Regional Trial Court has stopped the
government's move to sue wealthy businessman Lucio Tan and
his cigarette firm for tax evasion. In an order dated
August 25, Marikina judge Olga Palanca Enriquez "denied
with due course" the Department of Justice's appeal of the
25.27-billion Philippine peso (US$636.4 million at
PhP39.705=US$1) suit against Mr. Tan, a friend of President
Joseph Estrada, and his Fortune Tobacco Corp.

She noted the appeal, which questions the dismissal of the
suit by a metropolitan trial court, was filed too late.
Judge Enriquez said prosecutors may have "overlooked" new
Court rules which state that any decision must be appealed
within 60 days after its release or promulgation.

The orginal suit was dismissed by metropolitan trial court
judge Alex Ruiz on March 22. Prosecutors filed a motion for
reconsideration on April 7. They received a copy of the
order denying their motion for reconsideration on May 18.
The appeal, Ms. Enriquez ruled, should have been filed last
July 3. Prosecutors filed it only last July 17.  (Business
World  01-Sep-1999)

MONDRAGON LEISURE AND RESORTS: Asks for 7-day moratorium
--------------------------------------------------------
Hotel and casino operator Mondragon Leisure and Resorts
Corp. (MLRC) asked the Supreme Court yesterday to
reconsider its petition for a seven-day suspension of its
payment to Clark Development Corp. (CDC).

At the same time, CDC in a petition, asked the Supreme
Court to compel MLRC to turn over the Mimosa Leisure Estate
in accordance with a compromise agreement entered into by
the two parties in June. As expected, it also opposed
MLRC's petition to extend the payment of the latter's 325-
million-peso (US$8.2 million at PhP39.705:US$1) loan.

This developed as BusinessWorld sources said MLRC is now
courting several local banks to bridge finance its 325-
million-peso loan to the state agency after it failed to
reach an agreement with a foreign strategic investor in
time for its supposed payment to CDC.  At the same time,
the Philippine Stock Exchange (PSE) granted MLRC's request
to suspend for two days, beginning the other day, the
trading of its stocks in a bid to prevent its value from
dropping further.

MLRC, which operates the leisure estate in Clarkfield,
Pampanga, owes CDC some PhP325 million in unpaid rentals.
The firm should have paid PhP50 million (US$1.25 million)
last Saturday, representing its first of six payments to
CDC, or else "voluntarily" turn over the property.  CDC, in
its petition to the High Tribunal, also assured it will not
"forcibly" take over Mimosa.

In a message to MLRC employees, CDC president Rufo Colayco
said they have requested all cashiers to cooperate in
"enabling us to monitor all funds movements." He likewise
disallowed movement of any assets out of the estate.  

"We hereby wish to assure MLRC employees that when CDC
shall have ultimately acquired possession of the estate, we
shall ensure that business will proceed as usual. Although
the compromise agreement states that Mr. Gonzalez,
officers, employees, representatives shell leave, we hereby
assure everyone that there shall be no significant
disruption of employment. Whatever few changes will affect
mainly top management," Mr. Colayco said in his message,
copy furnished BusinessWorld.

At the same time, MLRC chairman and chief executive officer
Jose Antonio Gonzalez, in a letter, thanked the employees
and assured them that their employment shall remain secure
"in the event CDC does take possession and control of
Mimosa."

"I wish to thank you all for being there as part of the
team who started out to rebuild this once devastated area.
The dream shall continue, no matter who is at the helm, and
this hopefully shall be all of us together. Let us continue
to pray for the best outcome which will benefit the great
majority. In the end, God's will be done," Mr. Gonzalez
said.

An MLRC official, who requested anonymity, said MLRC has
not yet clinched a deal with a Canadian investor who was
rumored to bring into the firm between $150 million and
$175 million in fresh capital in exchange for 40% of the
company.  The Canadian investor, which the official
declined to name, reportedly wants MLRC to resume the
operation of the casino first before paying its obligation
to the government. The official added MLRC is also talking
with another foreign firm for a possible partnership.

"Investors are wary. They want to see everything is fine
before entering into whatever partnership," the official
told BusinessWorld.  

CDC and MLRC signed last July 28 a renegotiated contract
for the operation of Mimosa. Under the new contract, MLRC
would pay in six tranches its past arrears to CDC which
amounts PhP325 million. MLRC should likewise provide CDC a
letter of credit from bank creditors to guarantee payments
will be made during the six-month period starting in June.
MLRC yesterday pleaded the Supreme Court to deny a
government corporation's motion to immediately seize the
firm's assets within the 260-hectare resort.

In its opposition, MLRC asked the court to reject CDC's
demand to issue a writ of execution that will effectively
rescind its lease agreement with Mimosa and permit a
forcible takeover of the posh estate.  A writ of execution
is a written order from the court mandating a party to
implement a final and executory legal order.

In the MLRC-CDC row, the writ will have to be issued by the
Angeles Regional Trial Court, the court of origin,
following any order to the effect by the Supreme Court.  
MLRC counsel Ernesto B. Francisco, Jr. claimed CDC, in its
petition for the issuance of the writ of execution, was
merely going through the motions to legalize a contract
cancellation that it has effected on the day it filed the
pleading in court.

Mr. Francisco said his client could not understand the
unnecessary haste on CDC's part to terminate the compromise
settlement made in June.  Under court rules, CDC has the
right to immediately demand for a writ of execution in
light of MLRC's default. Delay in the proceedings is not
usually favored as it is "against the interest of justice."

"(MLRC has) cried 'Wolf!' once too often. Nothing in the
record shows they have reformed," said CDC.

The government agency body also insisted to compel CDC
president Rufo Colayco to give consent to payment
arrangements between Mimosa and its creditor banks "has no
basis in law."  (Business World  01-Sep-1999)   

PHILIPPINE AIRLINES: Eximbank withdraws court action
----------------------------------------------------
Philippine Airlines, Inc. (PAL) said the US Export-Import
Bank (Eximbank) had withdrawn a petition it filed with US
courts seeking to seize aircraft it leased to the flag
carrier.

"The lawyers of the US Eximbank in a hearing in San
Francisco withdrew its petition. In effect, it is giving
its approval to the PAL rehabilitation plan," said Rolando
Estabillo, PAL spokesman.

Trade Secretary Jose Pardo also told reporters that he was
informed by government's lawyers in the United States of
Eximbank's decision.  "It is over, unless there is another
violation," Mr. Pardo said.

The Eximbank had filed a petition with US courts to seize
four aircraft it leased to PAL after it complained that the
Securities and Exchange Commission (SEC) acted hastily in
approving the airline's debt restructuring plan.  The bank
expressed disappointment that the SEC approved the plan on
a simple 55% majority of creditors instead of a two-thirds
approval of secured creditors as mandated under insolvency
laws.

PAL's rehabilitation, involving the infusion of $200
million in fresh equity and restructuring of its $2.2-
billion debt, was set in motion when the SEC gave its
approval in June.

"They were removing their filing in court for the seizure
of the planes believing now that the rehabilitation plan
with all the goodwill that has been generated that the
viability (of the PAL survival plan) is apparently on
track," Mr. Pardo said. "PAL is apparently on a comeback,"
he added.

However, it was not clear yet whether Eximbank received
extra payments for the depreciation on the leased planes,
as it earlier requested, in exchange for the dropping of
the cases.  The SEC said it cannot allow payments outside
of PAL's rehabilitation plan since this would accord
preferential treatment to Eximbank.

PAL reported last week that it ended its worst period in
its history by posting a net profit of 65.4 million
Philippine pesos (PhP) (US$1.6 million at PhP39.705:US$1)
in the April to June period.  It also said it expected to
record a lower net loss of PhP600 million (US$15 million)
in the current financial year from the loss of PhP10.18
billion (US$256 million) in its last financial year ending
March.

PAL incurred big debts for an ambitious re-fleeting program
in the early 1990s, but a labor dispute and the Asian
currency crisis forced it to suspend debt payments and
temporarily close last year.  (Reuters, Business World  01-
Sep-1999)

UNIWIDE GROUP: Interest being shown in assets              
---------------------------------------------               
Some buyers have reportedly shown interest on selected
properties of listed firm Uniwide Holdings, Inc. (UHI) and
its subsidiaries which have been put as collateral to
creditor banks, industry sources said.

Sources said the parties might have shown interest in
several of the real estate assets because these might fetch
a "low market value." Banks are usually perceived to assign
low valuations on foreclosed assets.  Secured creditors may
be open to the option of allowing the sale of the
collaterals rather than going through costly foreclosure
proceedings, provided that the proceeds from the sale will
be used to pay for the Uniwide group's loans, the sources
said.

"This would mean less exposure to Uniwide for the
creditor," one of the sources said.

Foreclosed assets fall under a bank's real or other
properties owned or acquired (Ropoa) and become
nonperforming or non-earning.  The sources, however, said
UHI will have to wait until October 10 or until the
suspension of payment order granted by the Securities and
Exchange Commission (SEC) lapses before it can negotiate
with creditor banks.  Otherwise, the sources said, UHI may
be violating the additional 60-day debt relief provided by
SEC to enable it to come up with a viable rehabilitation
plan and scout for strategic investors. One of the
investors being eyed is Mike Velarde, head of the
charismatic group El Shaddai.

"If this happens, Uniwide would be favoring one creditor
over the other," the other source said.

UHI and its subsidiaries have 11.1 billion Philippine pesos
(PhP) (US$280 million at PhP39.705:US$1) in debts, of which
PhP6.95 billion (US$175 million) is owed to 13 creditor
banks.  (Business World  01-Sep-1999)     


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

GOLDTRON LTD.: Viability questioned
-----------------------------------
The auditors of beleaguered Goldtron Ltd said yesterday
that they were unsure if the electronics firm can continue
as a going concern but its directors think otherwise.

Based on Goldtron's financial statements for the year to
March 31, 1999, signed yesterday, auditors Moore Stephens
said it was "unable to form an opinion as to whether the
going concern basis of presentation of the financial
statements is appropriate."  It said the financial
statements do not include any adjustments "relating to the
recoverability and classification of recorded asset amounts
or to amounts and classification of liabilities that may be
necessary if the company and its subsidiary companies are
unable to continue as going concerns".

In response, Goldtron said it believes it can continue as a
going concern, thanks to a scheme of arrangement with
effect from Aug 26, and subject to the finalisation of its
plan to restructure the company and its borrowings.

"The company is currently working closely with the scheme
manager, Nicky Tan of Arthur Andersen, to develop and
implement a comprehensive restructuring plan for the
company," it said. The company's creditors agreed on Aug 26
not to take action against the company for a period of one
year.

Goldtron is also in negotiations with "several parties" who
are interested in taking a stake in the company. "The
company will make the appropriate announcement if and when
an agreement is reached on the terms and conditions of any
acquisition," the directors said.

They added that there has been sufficient financial
information disseminated to the market "that is necessary
to avoid the establishment of a false market in the
company's securities".  

Goldtron chairman Ong Soon Kiat's stake in the company as
of Aug 11 has slipped to 9.7 per cent from 9.8 per cent,
following the sale of 400,000 shares at 22-23.5 cents a
share. The disposal was made by "financial institutions to
meet financial obligations due to them".  (Business Times  
01-Sep-1999)

IPC CORP.: Court approves debt plan
-----------------------------------
IPC Corp said yesterday it had received court approval for
its scheme of arrangement between the company and its
unsecured and preferential creditors. IPC said the court
ordered the scheme to take effect from last Friday, thereby
allowing the company to continue as a going concern during
the period. A company statement added that Infomatec AG,
its German white knight, is now completing its due
diligence.  (Business Times  01-Sep-1999)

LIM KAH NGAM: To reduce par value of shares
-------------------------------------------
Property and construction group Lim Kah Ngam (LKN) said
that as part of its proposed restructuring scheme, some of
its liabilities are to be converted into redeemable
convertible bonds (RCBs), at a conversion price based on a
discount to the prevailing market price at the time of
issue of the RCBs.

However, since its shares have been trading below their par
value of $1 throughout the 12-month period ending July 27,
LKN is proposing that the par value of its shares be
reduced from $1 to 20 cents each. In-principle approval for
the change was obtained from SES on Aug 27. (Business Times  
01-Sep-1999)

VAN DER HORST: Trims its debts
------------------------------
Van der Horst has cut its debts to $144.6 million from $153
million after paying around $8.4 million in August. Of its
remaining debts, the company said its creditors have agreed
in principle to restructuring $119 million.

It is aiming for a final agreement with some 20 creditors
by the end of this month. This is the first step towards a
successful restructuring of the company's loans and the
process is unlikely to be completed before the year-end.
VDH said its infrastructure and power division is making
progress in collecting receivables from completed projects,
and this is providing adequate working capital to continue
operating as a going concern. But little progress has been
made in the Indonesian pipeline projects.  (Business Times  
01-Sep-1999)


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

BANK OF ASIA: Posts first-half loss
-----------------------------------
Bank of Asia posted an audited net loss of Bt1.89 billion
for the January-to-June period, representing a vast
improvement from a net loss of Bt6.72 billion over the same
period last year.  (The Nation  01-Sep-1999

BANKTHAI: Posts loss
--------------------
Bankthai reported an audited net loss of Bt12.2 billion, up
from the unaudited figure of Bt11.6 billion.  (The Nation  
01-Sep-1999)

DBS THAI DANU BANK: Posts first-half loss
-----------------------------------------
DBS Thai Danu Bank reported an audited net loss of Bt9.97
billion for the six-month period ending June 30 this year,
up from Bt5.3 billion over the same period last year. (The
Nation  01-Sep-1999)

KRUNG THAI BANK: Organizational shake-up ahead
----------------------------------------------
SINGH Tangtatswas, president of Krung Thai Bank, plans to
shake up the troubled institution by centralising its
management and returns but decentralising implementation
using the same model adopted by the Siam Cement Group.

Speaking to Nation News Talk yesterday, he said he intended
to propose the radical restructuring plan to the former
board of directors chaired by Mechai Viravaidya, before it
was sacked by the banking regulators.  Using his management
experience from Siam Cement, Singh made it clear that he
plans to change the matrix-style of organisation created by
the former board of directors. This matrix organisation was
made up with five business units and two support units,
each of which was headed by a chief operating officer
(COO).

The problem with the old system is that the chief operating
officers strictly operated under their sphere of duty and
responsibility although they had to report directly to the
chief executive officer. But since KTB did not have a CEO
for quite some time after the resignation of Sirin
Nimmanahaeminda, the chief operating officers had to report
to the executive board.

"The seven units in fact are the responsibility centre --
not the so-called seven independent boats," Singh said.

Modelling after the Siam Cement organisation, he said the
new KTB organisation will be compatible with international
standard practices, including good governance and an
efficient internal audit.

"What I'm concerned about at KTB is that it's a huge
organisation, which makes inter-communication rather
difficult," he said. "Looking at SCC, although it is also a
large organisation, it has a much better management policy.
SCC so far has centralised its policy but decentralised the
execution, while KTB has centralised almost everything."

Singh intends to reshape the new organisation of KTB so
that the headquarters provides the cost and account system
for its branches.

"We'll not focus only on profits but also human resources
and assets used to create efficiency. There would be a
check and balance system among branches," he said.

He added that since the seven operating units are only
responsible for operations, other issues involving policies
and support should be separated. For example, the corporate
service centre, which is a support unit supervised by
Pongsathorn Siriyodhin, covers broad responsibility and may
not be practical. It will be separated.

According to the new organisation, there are at least four
additional units to be established to improve the bank's
organisation. First, the chief financing officer will
oversee the bank's financial and risk asset management.
Second the chief credit officer will supervise the unit,
which is the bank's brain on credit extension responsible
for the macro situation. It will help decide the sun-rise
and sun-set sectors.

Third, the chief information officer will oversee the
management information system for the whole bank to boost
branch efficiency.  Fourth, the chief human resources
officer will draw up a policy for human resources
management. KTB, after the merger with First Bangkok City
Bank (FBCB), has about 18,000 staff, of whom 6,000 have
been identified as dispensable.

"KTB needs drastic changes. But to clean up the bank
doesn't mean to fire people, rather we need to educate
them. Barring further incidents, I believe KTB needs more
than three years to restructure its organisation.  We need
at least 30-40 decison-makers. We should find out our
corporate advantage. We aren't competitive in any field, we
need to indentify a niche," Singh said.   (The Nation  01-
Sep-1999)

KRUNG THAI BANK: Special audit ahead
------------------------------------
The Auditor-General's Office will begin a special audit of
Krung Thai Bank to ease public confusion about the
operations and standing of the giant state-owned bank.
Nontaphon Nimsomboon, auditor-general, declined to say when
the audit would start.

He also stressed that past examinations were fully in
keeping with accepted accounting standards.
The Auditor-General's Office is an independent body
responsible for auditing state enterprises and government
institutions in Thailand.  Mr Nontaphon said problem loans
at Krung Thai Bank totalled 393.48 billion baht at the end
of June, or 59.3% of total outstanding loans.

At the end of 1998, non-performing loans were 322.45
billion baht, or 48.05% of outstanding loans. The figures
include assets transferred from First Bangkok City Bank,
ordered merged with Krung Thai last year. Krung Thai Bank
yesterday announced audited first-half losses of 23.19
billion baht (2.07 baht per share).  For the same period
last year, losses were 12.92 billion baht (4.29 per share).

The bank said losses stemmed from declines in interest and
dividend income, as well as 20 billion baht in new
provisions against loan losses.  A public uproar developed
after a confidential report was leaked to a Senate
committee detailing widespread weaknesses in the bank's
lending and management information systems.

The report, prepared by PricewaterhouseCoopers, also
alleged improper credit analysis, lost documentation and
insufficient consideration of risk. The furor led the
government to sack the entire Krung Thai board and set up
an independent investigation.

Mr Nontaphon said the Auditor-General's Office audited
Krung Thai each quarter, with a full audit made every six
months.  The PricewaterhouseCoopers audit was done to
determine Krung Thai's recapitalisation needs and to help
the bank set up a strategy for managing problem loans, he
said.  The Auditor-General's Office, however, was tasked
with an overall examination of the bank's operations,
including relevant documents, loan quality and other areas
in line with accepted practice.

Mr Nontaphon said lending strictly on a collateral basis-
"no land, no loan"-was an outdated concept that had been
replaced by lending practices based on a borrower's future
prospects.  He said efforts by the government and bank
regulators to improve Krung Thai were on the right track
and would increase the bank's standing and stability in the
future.  Shares of Krung Thai Bank on the Stock Exchange of
Thailand yesterday closed at 15 baht, unchanged, in
turnover worth 245.16 million baht.  (Bangkok Post  01-Sep-
1999)

KRUNG THAI BANK: Posts first-half loss
--------------------------------------
Krung Thai Bank reported an audited net loss of Bt23.2
billion for the first-half of the year to June, compared
with the unaudited amount of Bt23.15 billion.  For the same
six-month period last year, the bank had a loss of 12.9B
baht.  Non-performing loans stood at more than 393B baht,
or 59.3% of lending. (The Nation, South China Morning Post  
01-Sep-1999)

PADAENG INDUSTRIES: Austrailian company to buy stake
----------------------------------------------------
Padaeng Industries said yesterday that Pan Australian
Resources plans to buy a stake in its copper mine in
northeast Thailand, which the two companies will jointly
develop.

Padaeng, by far Thailand's largest zinc producer, said Pan
Australian plans join Padaeng in a study to determine if
the mine in Loei province, about 300 miles northeast of
Bangkok, has commercial potential.  After the study, the
two companies will decide on the price and size of the
stake Queensland-based Pan Australia plans to acquire in
Padaeng's Puthep.  Terms are expected to be determined in
November, said Padaeng President Pinit Vongmasa.  

Padaeng has been looking for investors for the company and
some of its units after plans for Western Metals to buy a
36 percent stake in Padaeng collapsed in February, mainly
because of the Government's delay in approving a mining
concession.  Padaeng's nine creditors recently granted the
company an 18-month grace period of debt payment to allow
the company to seek a new investor.

Western Metals made a reservation to buy Padaeng's 81.6
million shares at 14 baht apiece on October last year. The
Australian company has already paid 91.43 million baht for
6.6 million shares, allowing the company to own 4.33
percent in Padaeng. However, it later gave up the
reservation to buy the remaining shares.  The company's
Chairman Arsa Sarasin said Padaeng is still attracting
several investors. (Business Day  01-Sep-1999)

RADANASIN BANK: Posts loss
--------------------------
Radanasin Bank reported an audited net loss of Bt1.16
billion, compared with the earlier unaudited figure of
Bt1.14 billion.  (The Nation  01-Sep-1999)

SIAM COMMERCIAL BANK: Posts first-half loss
-------------------------------------------
Siam Commercial Bank registered a net loss of Bt49.2
billion for the first six months of the year, compared with
an Bt11-billion loss in the same period last year.  (The
Nation  01-Sep-1999)

SIAM STEEL INTERNATIONAL: Posts annual loss
-------------------------------------------
Siam Steel International Plc posted a net loss of Bt510.02
million for the financial year ending June 30, compared
with a Bt1.618-billion net loss a year earlier.
the Stock Exchange of Thailand from today, following the
company's recapitalisation.  (The Nation  01-Sep-1999)

THAI FARMERS BANK: No Phatra Finance resolution yet
---------------------------------------------------
The fate of Phatra Finance is still undecided as the Bank
of Thailand (BOT) and Thai Farmers Bank (TFB) will today
jointly discuss possible solutions to the problem and
expect to conclude the matter within this week.

Finance Minister Tarrin Nimanahaeminda said that he has
received a report from the central bank saying that all
possible solutions will be thoroughly considered.

"Depositors should stay calm as the government guarantees
all deposits," Tarrin said.

Meanwhile, TFB late yesterday announced a cancellation of
its press conference, but issued a press statement
outlining its intention for the closure of its affiliate,
Phatra Finance.  According to press reports, TFB cited the
company's need to look after the interests of the bank's
shareholders and to place TFB in the best position to
attract new capital.

TFB owns a 94.4 percent stake in Phatra Finance.  On the
other hand, Financial Institutions Development Fund (FIDF)
manager Chakthip Nitiphon said the issue should not be
hurried as the company's 40 percent loan loss provision has
met government requirements.  Regarding the news that FIDF
will take control of Phatra Finance, he said it is a
possible option, but other options will also have to be
considered.

Moreover, there was no progress on the Phatra Finance issue
in the FIDF meeting which ended yesterday evening.  The
central bank earlier said it will not bail out Phatra
Finance as shareholders' equity was still positive. Phatra
Finance reported shareholders' equity of 4.98 billion baht
as at the end of June this year.  BOT Governor MR Chatu
Mongol Sonakul has strongly criticized TFB for not
following through on its mission to support its finance
firm and turn things around. He implied that Phatra Finance
did not abide by an agreement with the central bank.  
(Business Day  01-Sep-1999)

THAI OLEFINS CO.: Expecting 500 million baht loss this year
-----------------------------------------------------------
Thai Olefins Co (TOC), the partly-state-owned petrochemical
firm, is expected to post a 500 million baht loss this year
as a result of debt burdens.

In the first half of this year, it suffered a net loss of
404 million baht with a total revenue of 3.5 billion baht,
compared with a net profit of 315 million baht and total
revenue of 5.9 billion baht in the same period last year.
TOC is speeding up negotiations with its creditors to
extend loan maturities by at least another eight years to
salvage its financial position.

Acting president Pala Sookawesh said that despite the
gradual recovery of petrochemical prices in the world
market, heavy interest charges on TOC's outstanding loans
will result in losses for the company this year.  The price
of ethylene has now risen to US$500 per tonne from $300 at
the same period last year, while the price of propylene is
$400, up from $250. These are the main products from TOC's
plant in Rayong.

The prices are on the rise because of growing demand from
export industries in Asia.  However, as TOC, in which the
PTT held a 49% stake, is slow in restructuring debt, its
burden to repay loans totalling $350 million amounts to $40
million annually.

Mr Pala said that the company is negotiating with its major
creditors to allow TOC to repay only interest until 2005.
TOC is preparing a rehabilitation plan to be submitted to
its creditors, assuring them that the company will generate
sufficient revenue to repay its loans.  TOC is looking at
cooperating with Sirisin, a petrochemical subsidiary of
Bangkok Bank, as well as a petrochemical arm of Siam Cement
Group.  (Bangkok Post  01-Sep-1999)

THAI OLEFINS CO.: Creditors agree to debt rollover
--------------------------------------------------
Thai Olefins' (TOC) creditors agreed to roll over its $330
million debt by additional three years from the scheduled
2005, according to the company's Director Pala Sukawesh.

However, the 15 creditors, led by IBJ and Korea Exim Bank,
refused to give a three years grace period for the
principal payment as requested by TOC, but instead allowed
the company to repay its principal in small amounts during
the period.  TOC's request to reduce the interest rate was
being considered.

"The negotiation on the debt restructuring will take
another two to three months and is expected to be completed
by December this year," he said.

TOC President Aditheb Bisabutr said his company has already
paid US$26 million of principal and $15 million in
interest.  TOC, which previously committed itself to repay
its debt twice a year, every February and July, stopped
repayment in July this year due to financial difficulties.
However, the company has paid the 2.5 percent penalty from
failure to pay the principal.

Pala said TOC still has the capability to pay its debts
because of margins from its sale revenue. Therefore, its
debt will not become a non-performing loan (NPL), he said.
Nevertheless, TOC is aiming to further reduce its expenses
in a bid to boost competitiveness.

Regarding TOC's performance result, Pala expected the
company to show a loss of $500 million in 1999. It recorded
a $450 loss during the first half of this year as it
temporarily halted operations to maintenance its machinery
as the price of ethylene declined.

"Its performance results are expected to improve during the
latter half of this year as the price of ethylene has
risen," he said.

TOC's sales revenue has been estimated to be about 11
billion baht over the whole year.  (Business Day  01-Sep-
1999)

THAI TEL. & TEL.: Shin Corp ends stake talks
--------------------------------------------
Shin Corps yesterday announced it had ended talks over
taking a stake in debt-ridden Thai Telephone &
Telecommunications (TT&T) because no material progress had
been made in the negotiations.

"The concepts of debt restructuring between Shin and TT&T
were different, so we decided to terminate the plan,"
Shinawatra Group chairman Boonklee Plangsiri said
yesterday.

Shin proposed a strategic alliance with TT&T in a letter
dated June 17, 1999, with the condition that the
transaction would be terminated within two months after the
date of the letter if no material or positive progress had
been made.  Discussions with TT&T have been complicated by
the ailing fixed-line operator's continuing negotiations
with creditors aimed at restructuring almost $1 billion-
worth of debts.

A TT&T shareholder source said last week that the group
expected its financial adviser, Kensington of New York, to
complete a debt-restructuring plan within the next three
months so that it could embark on serious negotiations with
Shin.  Shin Corps said in a statement it ended had talks to
allow TT&T to concentrate on its debt restructuring.

The TT&T source said shareholders, lenders, and equipment
suppliers were all expected to share the losses.  While the
banks might have to accept a significant loss from lendings
in the hair-cut process, they should be compensated in the
future when TT&T is turned around.  TT&T is seen as a
complement to Shin which does not yet have a fixed-phone
line operation.

"It doesn't mean this is the end of telecom expansion,"
said Panya Thongchai of Shin Corps's investor relations
department. "We'll continue to look for other telecom
assets."

He didn't say whether further talks with Thai Telephone
would be possible in the future.  Shin Corps had planned to
invest between $100 and $150 million in TT&T along with
with other investors.  The holding company wants to expand
into fixed-line operations to aid its foray into Internet-
related businesses, and to improve the coverage of its
cellular network in the provinces. Thai Telephone operates
1.5 million fixed lines outside Bangkok.

Earlier this year, Shin Corps said it planned to raise
capital through the issue of 222.8 million new shares --
some in an initial public offering in the United States
early next year. It said it planned to use some of the
proceeds to buy telecoms assets in Thailand.  Currently,
Shin Corps has a 42 per cent stake in mobile phone operator
Advanced Info Service (AIS) and a 55.7 per cent stake in
Shinawatra Satellite, as well as interests in the
Philippines, Laos and Cambodia.

Jurairat Uhaka, executive vice president of Shin Corps,
told The Nation that Shin had previously asked TT&T whether
or not it would allow Shin Corps to participate in the
negotiations on debt restructuring.  She said there were
pros and cons in doing so. If the deal was successful, Shin
Corps would inject fresh funds into the ailing company to
help ease its debt burden.

The support from Shin Corps would also help TT&T to hasten
its debt-restructuring plan with the corporate debt-
restructuring advisory committee set up by the Bank of
Thailand to manage the debt-restructuring processes of big
companies.  But it was also possible that if Shin Corps
stepped in, TT&T's creditors would be unlikely to agree on
TT&T's debt haircut and would instead wait for new capital
from Shin Corps.

Jurairat said the company was no longer waiting for talks
to progress because it has to submit a financial report to
Nasdaq on October 1, 1999, in line with the application
process for listing its shares on the US stock market.

"If TT&T still needs to negotiate on the possibility of a
strategic partner, it will have to wait until the first
quarter of May next year after Shin completes the listing
process," said Jurairat.

Meanwhile, telecom analyst said that the latest move by
Shin Corps would have a negative impact on the ailing
fixed-line operator because it was in need of fresh funds
to ease its debt burden.  Shares of TT&T plunged by 25 per
cent yesterday soon after Shin announced it had terminated
talks over a strategic partnership. The shares later
recovered somewhat to close the day down Bt1.2, or 12 per
cent, at Bt8.8.

The share price of TT&T rose by Bt1 to Bt13.5 on June 17,
the date on which the letter of intent was signed by the
two companies. It rose to a peak of Bt16 a week after the
signing.  

Market analysts saw the call-off differently, however
suggesting that Shin has not abandoned its plan and will
return to the negotiating table after raising funds from
listing on the New York stock market. (The Nation, Bangkok
Post  01-Sep-1999)

WATTACHAK PLC: Sued for payment of listing fee
----------------------------------------------
The Stock Exchange of Thailand has filed a civil suit
against listed Wattachak Plc for failing to pay its 2.12
million baht listing fee.

The SET told the court that the troubled media company was
listed on September 6, 1991, with an agreement to pay an
annual listing fee of 60,000 baht to the SET and another
sum equivalent to 0.02% of the company's shareholders'
equity.  However, the company did not pay fees for 1997 and
1998, totalling 2.12 million baht. The SET asked the court
to order Wattachak to settle promptly.  (Bangkok Post  01-
Sep-1999)


S U B S C R I P T I O N  I N F O R M A T I O N

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Debra Brennan and Lexy Mueller, Editors.

Copyright 1999.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale
or publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without prior written permission of the
publishers.  Information contained herein is obtained from
sources believed to be reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6
months delivered via e-mail. Additional e-mail
subscriptions for members of the same firm for the term of
the initial subscription or balance thereof are $25 each.
For subscription information, contact Christopher Beard at
301/951-6400.  

                     *** End of Transmission ***